News Column

Market watch: Index continues downward movement

June 20, 2014

The index closed its fifth consecutive negative session as political noise and law-and-order situation kept buyers at bay.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.57% or 166.62 points to end at 29,157.98.

“Stocks opened positive as investor’s cheered amendments in budget that will benefit fertilisers and textiles,” said Faisal Bilwani of Elixir Securities. “However, gains couldn’t last long on institutional selling and few buyers at lows.”

“Pakistan Telecommunication Company Limited (PTC PA -5%) will see a significant decline in earnings as the govt decides to wrap International Clearing House agreement, closed at a lower price limit, while Engro Fertilizer (EFERT PA +2.7%) along with Engro Corporation (ENGRO PA +1%) gaining on budget revision news.

“Volumes chart was led by retail driven small caps with limited participation in blue-chip and value plays,” he said.

“We see stocks to trade thin volumes till clarity on political front while flows from foreigners will guide direction in days ahead. Earnings and payout related stories ahead of coming results season will keep interest alive in select names while any surprise on foreign flows can change the mood as market nears 29k,” he concluded.

Trade volumes rose to 171 million shares compared with Tuesday’s tally of 153 million shares.

Shares of 339 companies were traded on Wednesday. At the end of the day, 103 stocks closed higher, 212 declined while 24 remained unchanged. The value of shares traded during the day was Rs6.8 billion.

TRG Pakistan Limited was the volume leader with 15.1 million shares, losing Rs0.12 to finish at Rs14.68. It was followed by Telecard Limited with 14.7 million shares, losing Rs0.49 to close at Rs4.33 and the Bank of Punjab with 12.7 million shares, losing Rs0.27 to close at Rs8.86.

Foreign institutional investors were net sellers of Rs46 million, according to data maintained by the National Clearing Company of Pakistan Limited.

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Source: Nation (Pakistan)

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