Market watch: Profit-taking pushes index south, below 34,000

Benchmark KSE-100 index loses 116.61 points

KARACHI: The launch of the All Share Islamic Index failed to spur investors as the benchmark-100 index declined below the 34,000-point barrier as profit-taking kicked in soon after a slight increase.

At close on Wednesday, the Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.34% or 116.61 points to end at 33,949.26.



JS Global analyst Ovais Ahsan said the market saw range bound activity with profit taking witnessed toward the end of the session.

“Concern over constant foreign selling also kept investors cautious as foreign institutional investors have been net sellers to the tune of $242.4 million (year to date) with October alone seeing a net outflow of $47 million.

“Major index movers were Oil & Gas Development Corp. Limited -1.16%, Fauji Fertilizer Company -1.14% and Hub Power Company Limited -0.99%,” he said. “The export oriented textile sector which benefits from a depreciating rupee saw interest with Nishat Mills Limited +1.63% rallying.”

Meanwhile, Elixir Securities, in its report, stated stocks opened sideways in early trade tracking mixed performance of regional markets. “But as the day progressed, investors welcomed the speech of the finance minister on  the launching ceremony of the All Share Islamic Index, sending the index up by 136 points near mid-day.

“However, profit-taking at highs amid thin volumes dragged the index in red at day’s close.

“Most activity was again limited to small and mid-caps that dominated volume charts over retail activity, while main board sectors like cements, fertilisers, exploration and production and select banks ended the day lower,” it concluded.

Trade volumes fell to 184 million shares compared with Tuesday’s tally of 190 million.



Shares of 390 companies were traded on Wednesday. At the end of the day, 172 stocks closed higher, 183 declined and 35 remained unchanged. The value of shares traded during the day was Rs8 billion.

Descon Chemical was the volume leader with 15.8 million shares, gaining Rs0.38 to finish at Rs7.27. It was followed by Byco Petroleum Limited with 14.2 million shares, gaining Rs0.79 to close at Rs24.78 and TRG Pakistan Limited with 9 million shares, losing Rs0.76 to close at Rs40.03.

Foreign institutional investors were net sellers of Rs1.2 billion 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 19^th, 2015.

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