KARACHI: A see-saw ride saw the index end positive, but not before it swung both ways as anxious investors ensured a steady day at the Karachi Stock Exchange (KSE).
Nervous investors dumped stocks after the benchmark-100 index moved over the 35,900-point level with the graph taking a nosedive within a few minutes mid-day. The fall continued before attractive valuations helped the eager ones accumulate to eventually help the index close in the green.
At close on Thursday, the index ended at 35,730.01 points, increasing 0.15% or 53.51 points.
Elixir Securities analyst Faisal Bilwani said equities ended a volatile day with little change despite the morning gains. “Benchmark KSE-100’s positive run was wiped out after disappointing earnings by Fauji Fertilizer (FFC, -4.2%),” said Bilwani. “Nervous investors dumped stocks across the board with index nose diving by near 1.3% within a few minutes.
“Provisional data on cements suggests a double-digit decline in sales during July and kept most stocks in check with Maple Leaf (MLCF, -2%) hitting lower lock intraday,” said Bilwani.
“Institutional buying helped trim losses by close, while index heavy Oil and Gas Development Corporation (OGDC, +1.8%) gained after announcing a minor discovery. Additionally, earnings impact of less than Rs0.05 per share helped sustain momentum.
“K-Electric (KEL) ended flat after notifying investors on intentions to enhance transmission capacity by investing $400 million.”
Meanwhile, an analyst at Topline Securities said the bourse saw mixed activity.
“OGDC discovery in Chak Naurang South-1, Chakwal Block, attracted investors as they build their positions in index heavy weight stocks Like, OGDC and PPL.
“Renewed interest was seen in banking and gas distribution companies as HBL, UBL, SSGC and SNGP were up by 2.2%, 0.92%,3.1% and 3.4%, respectively,” said the analyst.
Shares of 365 companies were traded on Thursday. Of these, 126 companies closed higher, 225 fell and 14 remained unchanged.
Trading volumes increased to 429 million compared to 352 million on Wednesday.
Silk Bank (R) was the volume leader with 39.7 million shares, losing Rs0.07 to close at Rs0.26. It was followed by KEL with 25 million shares, gaining Rs0.07 to close at Rs8.08 and Byco Petroleum with 21.5 million shares, losing Rs0.87 to close at Rs26.87.
Foreign institutional investors were net buyers of Rs64 million worth of shares during the session, according to data compiled by the National Clearing Company of Pakistan.
Published in The Express Tribune, July 31st, 2015.
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