Benchmark KSE-100 index falls 35.49 points. PHOTO: AFP/FILE
After a positive start, intra-day drop in global crude prices meant index-heavy stocks lost their shine. Volatility persisted with the index touching a high of almost 34,400 before going south.
At close on Monday, the Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.10% or 35.49 points to end at 34,226.12.
JS Global analyst Arhum Ghous said volatility prevailed in Monday’s session as the index swung between +135 and -64 points. “Besides the news of increase in textile export duties and local prices, the textile sector, specifically Nishat Mills (NML -1.0%), failed to react amid recent loss of investors’ confidence and due to on-going National Accountability Bureau (NAB) inquiries against the group, resultantly major players in the sector closed in the red zone.
“Intra-day decline in global crude oil prices took its toll on the sector, with sector players such as BYCO, HASCOL and Attock Refinery (ATRL) closing in the red with the exception of Pakistan State Oil (PSO +1.1%). Interest in the scrip remained high due to increase in local Pakistan Oilfields (POL) product prices and healthy corporate results announced last week.
“Interest remained high in the fertiliser sector, where major scrips remained positive and closed positive, with the exception of the Engro Fertilizer (EFERT) and Engro Corp (ENGRO) that closed -1.6% and -0.4%, respectively.”
Meanwhile, Elixir Securities, in its report, stated equities closed little changed in lacklustre trading as investors waited with bated breath for flows from foreigners to set market direction, while support from local institutions was absent. “Lower-than-consensus inflation reading of 1.61% year-on-year for October failed to ignite any interest, resultantly, volumes in the index names were thin while volumes chart was topped by retail driven plays.
“Activity in the wider market was depressingly lower and day closed with turnover on KSE-100 at a seven-week low. Hub Power (HUBC +1.64%) was a notable gainer as the power maker gains from currency depreciation, however, most energy names struggled on lower crude and little interest.
“We expect selective interest and benchmark index trading in a narrow band near 34,500, while flows from foreigners will ultimately set the tone in days ahead. Moreover, investors will track news flow from IMF review this week.”
Trade volumes fell to 123 million shares compared with Friday’s tally of 196 million shares.
Shares of 374 companies were traded on Monday. At the end of the day, 129 stocks closed higher, 222 declined while 23 remained unchanged. The value of shares traded during the day was Rs5.7 billion.
TRG Pakistan was the volume leader with 18.6 million shares, gaining Rs0.52 to finish at Rs37.65. It was followed by Pace (Pak) Limited with 10.8 million shares, losing Rs0.26 to close at Rs7.91 and K-Electric with 10.7 million shares, gaining Rs0.09 to close at Rs7.66.
Foreign institutional investors were net sellers of Rs193 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, November 3rd, 2015.
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