market watch: Index ends positive amid volatile trading

Benchmark 100-share index increases 99.17 points

KARACHI: The market witnessed a volatile session with the index oscillating between over 120 points in the red to 268 points positive, eventually closing in the black after three days of successive decline.

At close on Tuesday, the Karachi Stock Exchange (KSE)-100 index ended at 35,274.66 points, increasing 0.28% or 99.17 points.

According to JS Global analyst Ahmed Saeed Khan, the market gained its support primarily from interest in the cement and fertiliser sectors as investors rushed to cherry pick scrips at discounted rates.



“Top gainers were Fatima Fertilizer (+4.97%), Fauji Fertilizer Bin Qasim Limited (FFBL) (+2.34%), Engro Fertilizers Limited (EFERT) (+2.71%) and Dera Ghazi Khan Cement (DGKC) (+1.54%).

“The banking sector remained under pressure throughout the day following the decrease in banking spreads, with the exception of UBL (+1.03%) and MEBL (+5%), that produced better-than-expected results for this quarter,” said Khan.

“Car auto manufacturers remained in the red zone whereas bus and tractor producers remained mainly in the green zone,” he added.

“Moving forward, we expect the market to remain positive. Cement and fertiliser sectors remain our favoured sectors for the week, while Engro Group of Companies continue to be among our favoured scrips,” Khan concluded.

Meanwhile, according to an analyst at Topline Securities, the market recovered partially on the back of smooth roll-over of Pak Elektron Limited (PAEL) and Engro.



“Better-than-expected quarterly results of Meezan Bank Limited (MEBL) and Honda Atlas Cars (HCAR) helped both stocks to close at their upper circuit,” they said.

“Investors took fresh positions in some blue chip stocks like Engro, Fatima, UBL and DGKC.”

Shares of 375 companies were traded on Tuesday. Of these, 225 companies closed higher, 131 fell and 19 remained unchanged.

Trading volumes decreased to 362 million compared to 570 million on Monday.

Silk Bank was the volume leader with 21.1 million shares, gaining Rs0.04 to close at Rs0.38. It was followed by TRG Pakistan Limited with 19.2 million shares, losing Rs0.96 to close at Rs43.54 and Jahangir Siddiqui and Company with 16 million shares, losing Rs0.83 to close at Rs29.95.

Foreign institutional investors were net sellers of Rs83 million worth of shares during the session, according to data compiled by the National Clearing Company of Pakistan.

Published in The Express Tribune, July 29^th, 2015.

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