Market watch: Stock market falls following Paris attack

Benchmark KSE-100 index loses 198.37 points

KARACHI: The stock market fell on Monday following the terrorist attack in Paris last week, depressed global oil prices and interest of foreign investors in offloading positions.

Although the index found support near the 33,900-point level, the decline in both volumes and value of shares traded was worrying.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.58% or 198.37 points to end at 33,946.41.

According to JS Global analyst Ovais Ahsan, the market started off in line with weak global markets that reacted to the terrorist attack in Paris on Friday. “Major index movers were MCB (-2.93%), OGDC (-1.31%) and Engro (-1.19%).



“Defensive plays with strong dividend yields remained in demand in the wake of overall volatility as Kot Addu Power (+1.24%) and Hub Power (+0.49%) gained.”

Mari Petroleum (+3.22%) rallied on the back of news that it had applied for shifting to the 2012 petroleum policy, which would allow it to raise the wellhead gas price for new discoveries, he said.

Meanwhile, Elixir Securities in its report stated equities started the week lower as investors tracked both regional markets and international crude prices that declined following the terror attacks in Paris.

“Stocks opened down and traded lower throughout the day with the benchmark KSE-100 index settling below 34,000 points at the close. Activity in the wider market was noticeably lower as only $39 million worth of shares changed hands on the benchmark index, setting a new seven-week low,” it said.



“Most sectors ended in the red with index-heavy oil shares leading the decline as international crude tumbled below $41 per barrel, while small and mid-caps led the volumes over retail-driven activity.”

The brokerage house anticipated that the market would trade range-bound and hover near 34,000, while announcement of the monetary policy date would likely generate some interest in the days ahead.

Trade volumes dropped to 131 million shares compared with Friday’s tally of 181 million.

Shares of 340 companies were traded. At the end of the day, 142 stocks closed higher, 185 declined and 13 remained unchanged. The value of shares traded during the day was Rs5.7 billion.

Pace (Pak) Limited was the volume leader with 15.2 million shares gaining Rs0.06 to finish at Rs8.61. It was followed by TRG Pakistan with 14.4 million shares gaining Rs1.64 to close at Rs40.63 and Shabbir Tiles with 8.4 million shares gaining Rs1 to close at Rs9.70.

Foreign institutional investors were net sellers of Rs316 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, November 17^th, 2015.

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