Market watch: Index dips below 34,000 in directionless trading

Benchmark KSE-100 index falls 57 points.

KARACHI: Investors opted to stay on the sidelines awaiting clarity on regional markets despite the quarter-earnings announcements about to kick into full gear.

Despite a positive start that saw the index go over 34,100, investors treaded with caution amid foreign selling. The benchmark-100 index dipped down to 33,900 before finding resistance.

At close on Wednesday, the Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.17% or 56.93 points to end at 33,974.85.



Elixir Securities, in its report, said equities closed the day marginally negative after listless trading with less than $50 million worth of shares exchanging hands on benchmark KSE-100 index. “Stocks opened lower and traded in a narrow range as investors, primarily institutions, preferred to stay on the side-lines awaiting clarity on global equities.

“Index names struggled to find direction on dismal volumes.”

Meanwhile, JS Global analyst Ahmed Saeed Khan said volatility continued as the index went in and out of the green zone to finally close 0.17% down. “Oil glut in global market has forced the international crude oil prices to enter into a downward spiral,” stated Khan.

“Major scrips remained nominally positive throughout the day, while biggest laggard for the sector today was Attock Petroleum Limited (-0.67%). Cherry picking and profit taking was witnessed in the cement and fertiliser sector.

“Interest was seen in the banking sector post announcement of Bank Al Habib Limited’s (BAHL +2.50%) result announcing earnings per share (EPS) of Rs4.77 served as a positive trigger for the scrip and the sector as three out of the big five banks closed positive.



Shares of 386 companies were traded on Wednesday. At the end of the day, 174 stocks closed higher, 183 declined while 29 remained unchanged. The value of shares traded during the day was Rs7.6 billion.

Pace (Pak) Limited was the volume leader with 31 million shares, losing Rs0.45 to finish at Rs7.09. It was followed by Lotte Chemical with 13.5 million shares that remained unchanged at Rs7.14 and TRG Pakistan with 12.4 million shares, gaining Rs0.42 to close at Rs37.21.

Foreign institutional investors were net sellers of Rs248 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, October 15^th, 2015.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.