Market watch: Selling continues as index ends in the red again

Benchmark 100-share index falls 34.84 points.

Our Correspondent July 10, 2015
A stock broker looks at the trading board at the KSE. PHOTO: AFP

KARACHI: Despite touching an intra-day high of 35,371 points, the index was unable to sustain its gain as profit-taking on the last day of the week and flow of negative news took their toll.

At close on Friday, the benchmark Karachi Stock Exchange (KSE)-100 Index fell 34.84 points or 0.10% to close at 35,112.29.

“As global oil prices slightly recover, the exploration and production sector posted gains, Hascol hit its upper circuit within the first hour of trading, similarly PSO, POL and PPL all ended 0.7%, 0.6% and 0.3% higher, respectively,” said Ahmed Saeed Khan of JS Global.

“Growing deposit growths and increasing T-bill yields kept the banking sector upbeat, closing the big five mostly in green.

“Going forward, we expect the market to continue on with this positive trajectory, cements and banks are our preferred sectors and top picks are Engro companies, DGKC, LUCK, FCCL, MCB, BAFL, PAEL,  ABL and UBL,” he said.

Meanwhile, Ahsan Mehanti of Arif Habib Corporation said stocks closed lower on late session profit-taking in selected scrips across the board on weak earnings outlook owing to higher tax levies on the corporate sector.

“The IMF’s cut of Pakistan economic forecast to 2.6% for 2015, weak global commodities amid rising political uncertainty played a catalyst role in bearish activity at the KSE,” Mehanti said.

Shares of 347 companies were traded on Friday. Of these, 155 companies closed higher, 179 fell and 13 remained unchanged.

Trading volumes decreased to 316 million compared to 364 million on Thursday.

K-Electric Limited was the volume leader with 21.1 million shares, losing Rs0.20 to close at Rs8.02. It was followed by Pace Pakistan Limited with 19.9 million shares, gaining Rs0.37 to close at Rs7.39 and TPL Trakker Limited with 16 million shares, gaining Rs0.65 to close at Rs20.67.

Foreign institutional investors were net sellers of Rs718 million worth of shares during the session, according to data compiled by the National Clearing Company of Pakistan.

Published in The Express Tribune, July 11th, 2015.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.

Facebook Conversations