KARACHI: Lacklustre and directionless trading ahead of the long Eid holidays that would see the market open on Monday meant that the index was unable to find a path, eventually closing marginally negative.
A mid-day surge in international crude oil prices meant the sector attracted investors, but the momentum was not enough to help drag the index in the green.
At close on Wednesday, the final trading day of the week, the Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.18% or 59.18 points to end at 32,822.84.
Elixir Securities analyst Faisal Bilwani said Pakistan equities closed marginally negative upcoming Eid holidays put participants in a snooze mode.
“Stocks opened lower, tracking losses in the region, while recent global events limited any attempts of a recovery.
“KSE-100 index drifted lower to test the 32,700-point level, however, reported institutional buying in index heavy oils possibly due to mid-day surge in global crude pulled the index back near Tuesday’s mark.
“Activity in the wider market remained dull, but sector-specific interest was evident with the pharmaceutical sector ending higher on earnings excitement and on reported institutional flows.
“Investors will closely track regional markets and commodities during the holidays. Additionally, news flow from Pakistan Euro Bond issue will likely bring macroeconomic indicators in the limelight. We see volatile market in days ahead with activity picking up post holidays and benchmark KSE-100 consolidating above 33,500.”
Meanwhile, JS Global analyst Arhum Ghous said, “After China’s Purchase Managers Index fell to 47.0 (lowest in six and a half years) and sell off in commodities underpinned by lingering concerns about China, regional markets continued to remain in the bearish zone.
“Volatility persisted in the local market as well due to the last day of roll-over week. Volumes remained low due to a lack of local participation. Institutional investors opted for value investing across the broad.”
Trade volumes fell to 130 million shares compared with Tuesday’s tally of 137 million shares.
Shares of 341 companies were traded on Wednesday. At the end of the day, 163 stocks closed higher, 155 declined while 23 remained unchanged. The value of shares traded during the day was Rs5.2 billion.
K-Electric Limited was the volume leader with 28.6 million shares, losing Rs0.14 to finish at Rs7.11. It was followed by Byco Petroleum Pakistan Limited with 19.4 million shares, gaining Rs1.18 to close at Rs26.52 and TRG Pakistan Limited with 5.2 million shares, gaining Rs0.28 to close at Rs31.96.
Foreign institutional investors were net sellers of Rs241 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, September 24th, 2015.
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