Market watch: Index gets boost amid thin turnover

Benchmark KSE-100 index rises 154 points

KARACHI: Pakistan equities broke their four-day losing streak, but volumes still remained low as investors await clarity on many fronts including flow of regional markets and reports of broker investigations.

Turnover was recorded at its lowest level since May with just a little over 100 million shares changing hands.

The index opened positive and managed to sustain its level in the black with news over a stable outlook assigned by Fitch giving some boost to an otherwise lacklustre day of trading.



At close on Wednesday, the Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.46% or 154.10 points to end at 33,345.56.

Elixir Securities, in its report, stated index-heavy oil stocks landed support on uptick in crude, while cements also closed higher as lower coal prices brought back interest of value buyers. “Pioneer Cement (PIOC PA +2.05%), Cherat Cement (CHCC PA +1.80%), Maple leaf Cement (MLCF +1.77%) and Dera Ghazi Khan (DGKC +1.54%) ended the day in green.

“We expect market to trade range bound as investors will continue to track regional markets and will wait for institutional flows to guide market direction,” he added.

Meanwhile, JS Global analyst Ahmad Saeed Khan said the cement and fertiliser sectors rallied on the back of reduced interest rate.

“The oil sector rallied on the back of appreciating global oil prices where most scrips remained in green. Top gainer of the sector was Byco (+4.58%) in anticipation of good results,” he said.

“After Ghandhara Nissan Limited (GHNL) announced a better-than-expected result, the script hit its upper circuit,” said Khan.

Trade volumes fell to 104 million shares compared with Tuesday’s tally of 132 million shares.

Shares of 358 companies were traded on Wednesday. At the end of the day, 220 stocks closed higher, 113 declined while 25 remained unchanged. The value of shares traded during the day was Rs4.9 billion.



Byco Petroleum was the volume leader with 11.6 million shares, gaining Rs1.10 to finish at Rs25.09. It was followed by Pace Pakistan Limited with 5.1 million shares, gaining Rs0.15 to close at Rs6.76 and Dewan Cement with 4.3 million shares, losing Rs0.04 to close at Rs17.27.

Foreign institutional investors were net sellers of Rs292 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, September 17^th,  2015.

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