Market watch: Index posts minor recovery

Benchmark KSE-100 index gains 72.83 points

KARACHI: The index swung sideways, but managed to close in the black after a volatile session saw it moving in the range of over 500 points during the day.

After a positive start, which saw it crossing the 32,500-point barrier with ease, the benchmark-100 index tested the 32,000 before a minor recovery helped it close marginally in the black.



The regulator’s statement that clarified brokers’ investigation being restricted to a select few and regional market recovery helped investor sentiment. However, rumours over another investigation meant the upward drive was not sustained.

At close on Wednesday, the Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.23% or 72.83 points to end at 32,287.41.

Elixir Securities, in its report, stated stocks opened gap up on all-round recovery in region while Tuesday’s statement of the Securities and Exchange Commission of Pakistan (SECP) that eased concerns over brokers’ investigations also landed support, leading Index to gain 350 points in an early hour.

“However, the market failed to sustain an upward drive as a fresh rumour on a broker’s investigation under a land grabbing case jolted participants’ confidence again, which eventually resulted in the index nose-diving to test 32,000 near midday.

“Reported value buying at lows by the institutions and quarter end window dressing, however, pulled the market back in green.”

“With benchmark KSE-100 index finding support near 32,000, we expect market to gradually edge up in days ahead as value buyers step in to take advantage while broker investigations related news will keep investors on the lookout,” the report added.

On the other hand, JS Global analyst Saeed Ahmad Khan said volumes picked up and the benchmark-100 index fluctuated in the range of +346 and -164 points.



“Interest was seen in value stocks especially in the cement sector,” said Khan. “We expect the market to remain range bound with low volumes, testing the patience of participants in the near future,” noted Khan.

Trade volumes rose to 210 million shares compared with Tuesday’s tally of 179 million shares.

Shares of 362 companies were traded on Wednesday. At the end of the day, 199 stocks closed higher, 146 declined while 17 remained unchanged. The value of shares traded during the day was Rs8.7 billion.

K-Electric Limited was the volume leader with 37.4 million shares, gaining Rs0.02 to finish at Rs7.06. It was followed by TRG Pakistan Limited with 12.8 million shares, gaining Rs0.97 to close at Rs32.98 and Pak Elektron (XD) with 12 million shares, gaining Rs3.43 to close at Rs72.09.

Foreign institutional investors were net sellers of Rs419 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, October 1^st, 2015.

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