Market watch: Investors book profits as index ends in the red

Benchmark KSE-100 index falls 119.65 points

KARACHI: Despite a positive start that saw the index break the 34,000-point barrier, Pakistan equities ended the week on a negative note with absence of any meaningful triggers keeping investors at bay.

Oil stocks managed to keep some interest alive. However, investors, keenly awaiting the monetary policy announcement due on Saturday (today), treaded with caution as earnings announcements come to an end.



At close on Friday, the Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.35% or 119.65 points to settle at 33,672.72.

Profit-bookers took advantage of the index crossing 34,000 and managed to make some money, but lacklustre trading continued with only 151 millions shares, valuing around Rs6.5 billion, changing hands.

Elixir Securities analyst Faisal Bilwani said lacklustre trading dominated the session with turnover on benchmark KSE-100 index setting a 12-week low.

“Stocks opened gap up and benchmark tested the 34,000 level in early day as participants tracked regional markets, while index heavy oils also landed supported after the latest recovery in global crud,” said Bilwani.

“Textiles remained in the limelight and closed higher as the premier met key exporters and assured government support to increase exports.

“However, market failed to sustain the upward drive as investors opted to book profits,” said Bilwani.

JS Global analyst Saeed Ahmed Khan said volatility continued as investors chose to book profits in the first session and remained sidelined in the session after the break. “Participation remained low as investors remained confused over the upcoming monetary policy,” said Khan.

“Profit taking was witnessed in the cement sector, major laggards of the sector were Maple Leaf Cement (-2.98%), DG Khan Cement (-0.84%) and Attock Cement Pakistan (-1.74%),” said Khan.

Trade volumes fell to 151 million shares compared with Thursday’s tally of 170 million shares.

Shares of 381 companies were traded on Friday. At the end of the day, 160 stocks closed higher, 198 declined while 23 remained unchanged. The value of shares traded during the day was Rs6.5 billion.



Dewan Cement was the volume leader with 11.6 million shares, losing Rs0.08 to finish at Rs17.84. It was followed by Pak Electron with 9.6 million shares, losing Rs3.54 to close at Rs77.62 and Azgard Nine with 8.2 million shares, gaining Rs0.28 to close at Rs5.39.

Foreign institutional investors were net sellers of Rs45 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited. 

Published in The Express Tribune, September 12^th,  2015.

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