News Column

KSE: Massive trading, foreign buying, 746 points up in week

May 24, 2014

The Karachi Stock Exchange (KSE) recorded bearish trading activities in final trading session of the week on Friday as the recent foreign bullish rally lost strength with offshorers investing little after continuous buying this month which forced the main index to end with moderate losses.

The benchmark KSE 100-Index shed 0.28 percent or 58.88 points to close at 21,283.77 levels on Friday as against 21,342.65 levels reported on Thursday as local investors also followed the suit of foreign investors with major chunk of profit-selling was witnessed in cement, telecom and banking sectors but Bank of Punjab returned to bullish ways after days of declines.

During the week that ended on May 24, 2013, the KSE 100-Index surged by 746.74 points with three out of five trading sessions injected 921.87 points into bullish zone before the last two trading sessions ejected 175.13 points out of the value.

The KSE 100-Index jumped by 277.11 points to end at 20,814.14 levels on Monday, augmented by 353.86 points to close at 21,168 levels on Tuesday, bolstered by 290.90 points to conclude at 21, 458.90 levels on Wednesday, declined by 116.25 points to close at 21,342.65 levels on Thursday, and dropped another 58.88 points to finish the weekly trade at 21,283.77 levels on Friday.

The Karachi Stock Exchange began the final trading day of the week on a mild bullish note on Friday morning where the main index came close to breaching the 21,400 levels but profit-taking at higher levels pulled it back.

The to-and-fro movement continued in the choppy session and the main index entered the Friday's prayer break with an increase of 13 points at 21,355.66 levels.

The post-prayer-break session commenced on the bullish note and soon the main index scampered past the psychological 21,400 levels before going on to hit the intraday highest level of 21,421.01.

However, the foreign investors then resorted to sell holdings at intraday highs which hampered the overall market sentiments and the main index nosedived into the red column before hitting the lowest level of the day of 21,270.24. The last-gasp buying then helped the key index to close a little above the intraday lows.

The market volumes were reduced by 111.746 million shares to 361.227 million shares as against trading of 472.973 million shares recorded on Thursday as local investors adopted cautious approach after foreign investors decided to sell their holdings at record levels.

During the week that ended on Friday, the Karachi Stock Exchange registered total volumes of 2.193 billion shares at average daily turnovers of 438.772 million shares.

The KSE recorded turnovers of 343.599 million shares on Monday, 443.639 million shares on Tuesday, 572.42 million shares on Wednesday, 472.973 million shares on Thursday, and 361.227 million shares on Friday.

During the week under review, the foreign investors did net buying of Rs.11.445 billion (116.791 million U.S. dollars) in the equity market.

During the month of May, 2013, the offshore investors have net invested a total of 25.429 billion rupees (259.482 million U.S. dollars) at the Karachi Stock Exchange by May 24, 2013.

In broader market, a total of 368 companies exchanged hands during the course of trading on Friday where prices of 192 issues advanced into the green zone, 161 fell into the bearish lap, whereas values of 15 other scrips stayed unchanged at previous day' s levels.

Bank of Punjab (R) was the top traded company on Friday with trading of 62.961 million shares in its scrip, followed by Pace Pakistan, Dewan Cement, PTCL, Engro Corporation, Bank of Punjab, WorldCall Telecom, Fauji Cement, Karachi Electric Supply Company, and Maple Leaf Cement with turnovers of 42.057 million shares, 18.867 million shares, 16.075 million shares, 15.260 million shares, 12.664 million shares, 12.066 million shares, 10.109 million shares, 8. 253 million shares, and 7.101 million shares, respectively.

Nestle Pakistan returned to bullish ways on final trading day of the week as it lead the top price gainers' counter with increment of Rs.100.00 to close at Rs.6,600.00 while on the other hand Colgate Palmolive was the top price shedder of the day with decline of Rs.69.35 that finished at Rs.1,801.00.

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Source: Daily Messenger (Pakistan)

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