KARACHI: After days of directionless trading, Pakistan equities found one on Tuesday. But the direction taken was south as the index plummeted close to 32,000 before finding some resistance.
Tracking the regional rout, the index closed 1.45% down on thin volumes.
At close on Tuesday, the Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 1.45% or 475.44 points to end at 32,214.58.
Elixir Securities, in its report, stated the decline was led by oil and financial sector stocks. “Most sectors closed lower with index heavy Habib Bank (HBL PA -2.28%) and Oil and Gas Development Company (OGDC PA -3.46%) doing the most damage.
“On the other hand, Fecto Cement (FECTO PA +5%) ended the day at the upper price limit after announcing earnings and pay-out. Overall, the wider market witnessed selective interest with volumes primarily in second- and third-tier stocks on retail participation.
“We expect market to consolidate at current levels with participants closely tracking the region and commodities in absence of any major trigger,” it added.
Meanwhile, JS Global analyst Saeed Ahmad Khan said antagonistic sentiment prevailed at large amongst market participants as, irrespective of news flows, the KSE continued its downward spiral, following the footsteps of its regional peers.
“The biggest laggards of the sector for the day were ABL (-1.8%), HBL (-2.3%) and UBL (-2.1%).
“On the back of good financial results and in anticipation of a favourable policy, along with rumours of special incentives, large vehicle manufacturers kept interest in the sector where Ghandara Nissan Limited (GHNL+5%) and Hino Motors Limited (HINO+5%) hit their upper circuit before noon,” said Khan.
Trade volumes rose to 179 million shares compared with Monday’s tally of 111 million shares.
Shares of 359 companies were traded on Tuesday. At the end of the day, 65 stocks closed higher, 281 declined while 13 remained unchanged. The value of shares traded during the day was Rs6.9 billion.
K-Electric was the volume leader with 24.5 million shares, gaining Rs0.03 to finish at Rs7.04. It was followed by TRG Pakistan Limited with 16.7 million shares, gaining Rs1.35 to close at Rs32.01 and Jahangir Siddiqui and Company with 10 million shares, losing Rs0.35 to close at Rs18.02.
Foreign institutional investors were net buyers of Rs66 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, September 30th, 2015.
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