KARACHI: A lacklustre day at the bourse provided investors an opportunity to play safe and trade carefully and the market got some boost following the release of low inflation numbers for July.
Interest was seen mainly in Engro Corp in anticipation of better financial results. Automobile stocks also gained on the back of expected improvement in car sales. At close on Monday, the benchmark KSE 100-share index stood at 35,824.56 points, up 0.23% or 83.04 points.
Elixir Securities analyst Faisal Bilwani said the equities closed positive with lowest volumes since the third week of June. “Investors continued to play safe amid the ongoing earnings season. Stocks opened positive and took a midday breather,” he said.
However, Bilwani added the inflation reading at 1.8% year-on-year for July against the consensus forecast of 2.3% helped channel fresh liquidity into the market, with Engro (+2.2%) leading the movers.
“Cement shares traded mixed due to the hangover from recent sales numbers that were down due to Ramazan and monsoon season, however, we see the stocks bouncing back as earnings announcements for the cement-makers get near.”
An analyst at Topline Securities said stability was noted at the bourse after lower-than-expected inflation numbers were announced.
The analyst added a pre-result rally was seen in Engro, up 2.2%, and Engro Fertilizer, up 1.5%, as investors expected better June 2015 earnings.
“Auto assemblers also rallied in anticipation of improved car sales numbers for July. Honda Atlas Cars, Pak Suzuki Motor and Indus Motor rose 5%, 3.5% and 0.4%, respectively.”
Shares of 362 companies were traded. Of these, 179 companies closed higher, 168 fell and 15 remained unchanged. Trading volumes decreased to 200 million shares compared to 299 million on Friday.
TRG Pakistan was the volume leader with 14.8 million shares losing Rs1.98 to finish at Rs38.8.
It was followed by Silkbank (R) with 14.8 million shares gaining Rs0.01 to close at Rs0.22 and Pace (Pak) Limited with 11.2 million shares gaining Rs0.31 to close at Rs6.90.
Foreign institutional investors were net buyers of Rs57 million worth of shares during the session, according to data compiled by the National Clearing Company of Pakistan.
Published in The Express Tribune, August 4th, 2015.
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