Market watch: Several depressants as index remains in the negative

Benchmark KSE-100 index falls 241.99 points

KARACHI: The Karachi Stock Exchange (KSE)-100 index continued to fall and ended negative for the fourth successive time as investors found more reasons to sell.

Tracking the fall in the price of global crude, fear of rupee devaluation and sliding equity markets worldwide, investors continued to offload with results announcements doing little to help the gain.

At close, the KSE-100 index was down 241.99 points or 0.68% and ended at 35,219.59.

An analyst at Topline Securities said continuous fall in global equity markets and fear of devaluation of rupee affected investor sentiment.



“They’re expecting further foreign outflows which may keep Karachi market depressed.

“Index heavy weight oil stocks kept on falling amid declining international oil prices. Oil and gas development corporation (OGDC), Pakistan Petroleum Limited (PPL) and Pakistan Oilfields Limited (POL) were down by 1.53-4.16%.

“Some profit taking was seen in K- Electric Limited (KEL) and Packages Pakistan (PKGS) as they announced their results which were in line with market expectations. KEL and PKGS decreased by 1.70% and 1.60%, respectively.”

Meanwhile, JS Global analyst Ahmed Saeed Khan said volatility prevailed at the session amid lower volumes. “Foreign selling spree continued that further dampened investors’ confidence as the market failed to react to any positive news flow,” said Khan.

“KEL (-1.09%), Hubco (+4.82%) and PKGS (-1.25%) announced their results, but the market failed to react as a short lived rally was witnessed but lacked conviction to move the market to the positive.”

Trade volumes increased to 281 million shares compared with Wednesday’s tally of 210.5 million shares.

Shares of 394 companies were traded on Thursday. At the end of the day, 121 stocks closed higher, 255 declined while 18 remained unchanged. The value of shares traded during the day was Rs10.7 billion.

K-Electric Limited was the volume leader with 66.7 million shares, losing Rs0.09 to finish at Rs8.16.

It was followed by Dewan Cement with 25.6 million shares, gaining Rs0.68 to close at Rs15.15 and Jahangir Siddiqui with 9.1 million shares, losing 1.04 to close at Rs26.99.



Foreign institutional investors were net sellers of Rs543 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, August 21^st,  2015.

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