Market watch: Index faces resistance, loses 185 points

Benchmark KSE-100 index ends at 32,784.4

KARACHI: Pakistan equities were unable to carry on with last-week’s momentum, which saw the benchmark-100 index gain over 2.3% in three trading days, amid a lacklustre trading session on the opening day of the week.

Investors chose to stick to value plays and blue-chip stocks such as cements and fertilisers. Despite a positive start, the index found resistance after crossing the 33,000-point barrier.

At close on Monday, the Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.56% or 184.79 points to end at 32,784.94.



Elixir Securities, in its report, said equities closed negative after testing 33,000 on a rather dull note.

“Rising political noise ensured value hunters stayed on the sidelines. Cements and fertilisers saw profit booking; with later on rumours related to urea pricing as Fauji Fertilizer (FFC, -3.79%) and Fauji Fertilizer Bin Qasim (FFBL,-3.01%) ended the day in red.”

Meanwhile, JS Global analyst Ahmed Saeed Khan said volatility prevailed in Monday’s session as the index continuously juggled to eventually close negative.

Khan said anticipation of auto policy being approved shortly with special incentives for large vehicle manufacturer has kept investors interest in the sector, where Ghandhara Nissan Ltd (+5.00%) and Al-Ghazi Tractors Limited (+5.00%) hit their upper tier before mid-day.



“The market was influenced with rumours of some restriction being imposed on exports of cements and subsequent local price war to be initiated shortly that brought negativity to the otherwise strong sector,” said Khan.

Trade volumes fell to 166 million shares compared with Friday’s tally of 211 million shares. Shares of 374 companies were traded on Monday. At the end of the day, 131 stocks closed higher, 224 declined while 19 remained unchanged. The value of shares traded during the day was Rs7.9 billion.

Byco Petroleum was the volume leader with 22.5 million shares, gaining Rs0.39 to finish at Rs26.57. It was followed by Pak Elektron Limited with 15.6 million shares, gaining Rs0.21 to close at Rs79.68 and TRG Pakistan Limited with 15.4 million shares, losing Rs0.58 to close at Rs34.86.

Foreign institutional investors were net buyers of Rs72 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, October 6^th, 2015.

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