KARACHI: The bourse experienced lacklustre trading on Friday as bulls failed to attract the attention of investors.
The main activity was concentrated in the fertiliser sector where Engro Fertilizers was seen struggling in the wake of government’s decision to divert gas supply from its plant.
At close, the Karachi Stock Exchange (KSE) benchmark 100-share index recorded a fall of 0.08% or 27.84 points to end at 34,426.75.
Elixir Securities in its report said Pakistan equities closed the week with a small change with turnover showing a noticeable improvement, hitting a four-week high.
“Morning news of the IMF’s approval of the next loan installment was taken positive,” said the report. “However, the market traded in a narrow band in the absence of any major excitement.”
The highlight of the day was Engro Corporation (-2.43%) that endured selling pressure over the government’s decision to divert gas supply to power production and away from one of the urea plants of its subsidiary Engro Fertilizers (-4.24%), said the report.
“Textile giant Nishat Mills (+0.65%) traded more than 15 times of its 180-day average daily volume on reported foreign selling, while the stock managed to close in the black over reported local institutional buying.”
JS Global analyst Ovais Ahsan said the market closed flat as investors continued to tread cautiously because of lack of immediate triggers. There was consistent foreign selling as well as expectation that the State Bank would keep interest rate unchanged in this month’s monetary policy, he said.
“Engro Fertilizers led the decline on the back of news that the government will divert gas from its fertiliser unit to the Guddu plant.”
“K-Electric (+2.3%) led the gains with healthy volumes on anticipation that the government will soon approve coal tariffs for its plant after recent approval for other plants like Lalpir Power (+5%).”
Trade volumes rose to 302 million shares compared with Thursday’s tally of 200 million shares.
Shares of 341 companies were traded. At the end of the day, 166 stocks closed higher, 153 declined while 22 remained unchanged. The value of shares traded during the day was Rs12.7 billion.
TRG Pakistan was the volume leader with 37.2 million shares, gaining Rs1.11 to finish at Rs42.72. It was followed by Descon Oxychem Limited (R) with 33.6 million shares, gaining Rs0.84 to close at Rs0.85 and K-Electric Limited with 28.8 million shares, gaining Rs0.18 to close at Rs7.92.
Foreign institutional investors were net sellers of Rs523 million worth of shares during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, November 7th, 2015.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ