KSE index slightly down on profit-taking

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The Karachi Stock Exchange benchmark 100-index witnessed mixed trend on Tuesday and declined by 11.46 points on profit-taking, dealers said.


Ahsan Mehanti, an analyst at Arif Habib Corporation, said stocks closed lower on institutional profit-taking in overbought market on renewed concerns over the circular debt in the energy sector and power cuts for industrial sector.


Security unrest in the city, limited foreign interest and economic uncertainty played a catalytic role in the bearish activity in selected stocks across-the-board amid hopes for record earnings announcements in the textile stocks on rising exports and the State Bank of Pakistan announcements on revision in the banking sector minimum deposit rates, he said.


The KSE-100 index fell by 11.46 points, or 0.05 percent, to 23,160.89 points against 23,172.35 points recorded in the last session. The index remained mixed and went up and down several times, while ended with a minor decline. The highest index of the day remained at 23,265.09 points, while the lowest level of the day remained at 23,099.80 points. The KSE-30 index also declined by 14.39 points, or 0.08 percent, to 18,115.16 points in the session against 18,129.55 points recorded in the last session.


Trading activity was recorded across-the-board. Of a total of 351 active companies in the session, 159 ended in the positive territory, 169 in the negative zone and 23 companies remained unchanged.


Turnover and market capitalisation slightly improved, while trading value declined in the market. Turnover increased by 18 million shares to 223.18 million from 205.98 million shares. Trading value fell to Rs10.45 billion against Rs11.12 billion, while market capitalisation increased to Rs5.637 trillion against Rs5.631 trillion recorded in the last session.


Zafar Moti, analyst and senior member of the KSE, said the market witnessed mixed trend amid correction period. “The market remained up and then down curves in the session, as correction time has started in the market, which will likely to remain active for some session,” he said.


Moti said that the market ended in the red zone despite support by the Pakistan Telecommunication Company Limited (PTCL), whose share price increased because of its better-than-expected financial results for the first half of 2013. “Some profit-taking was witnessed in the oil sector, where Pakistan Petroleum Limited (PPL) and Pakistan State Oil (PSO) prices declined,” he said.


An analyst said the market moved in both the directions several times, while it ended in the red zone, amid correction in the overbought market. PTCL and the National Bank of Pakistan helped the market from further going downwards. However, a decline in Engro Corporation and the oil sector pulled the market downwards.


Mujtaba Barakzai, an analyst at JS Global, said the market dropped 11 points to close in the red today at the 23,161 level. “Profit-taking was witnessed in Engro as it’s fertiliser plant was still not receiving 60mmcfd of gas through Mari network from Guddu as rumours spread that negotiations are still in progress with the government about the allocation,” he said.


The banking sector remained in the limelight on the rumors of a cut in savings deposit rate. The NBP was the star performer as it closed the day up by five percent on a trading of 18.8 million shares. “PTCL announced its first half of 2013 earnings of Rs1.54 per share along with a dividend payout of Re1 per share, which surprised investors,” Barakzai said.


Samar Iqbal, senior manager equity sales, Topline Securities (Pvt) Ltd, said mainly led by Engro Corporation, the index lost 11 points at the close. “Engro Corporation, which was rallying for the last few sessions witnessed some profit-taking and closed three percent down,” she said. “However, PTCL and NBP supported the fall. PTCL closed upwards after announcing better-than-expected results, while institutional buying in the NBP also helped it close at its five percent upper limit.”


An analyst at Sherman Securities said Engro dampened the sentiment initially with the talks that appropriation of gas supply may be delayed to Engro, which pulled its share price down by three percent. “Banking sector again became the centre of interest for the investors,” he said.


Highest increase was recorded in the shares of Nestle Pakistan, which rose by Rs160 to Rs6,460 per share; followed by Rafhan Maize that improved by Rs100.15 to Rs5,400 per share. Major decline was witnessed in the shares of Philip Morris Pak, which fell by Rs10.66 to Rs312.72 per share; followed by Attock Petroleum Limited that declined by Rs6.99 to Rs568.63 per share.


PTCL remained the volume leader with 21.47 million shares on an increase of 67 paisas to close at Rs25.50 per share; followed by the National Bank with 18.78 million shares on an increase of Rs2.62 to Rs55.03 per share.


PIA remained the third leading stock with 17.21 million shares on a decline of 24 paisas to Rs8.82 per share, Faysal Bank’s 14.69 million shares on an increase of 71 paisas to Rs11.35 per share, Jahangir Siddiqui Co’s 13.62 million shares on an increase of 38 paisas to Rs12.68 per share, Engro Corporation recorded trading of 7.53 million shares with a decline of Rs4.77 to Rs176.61 per share, Nishat (Chunian) Limited witnessed the trading of its 7.10 million shares on an increase of Rs3 to Rs64.04 per share, Bank of Punjab’s 6.31 million shares were traded with a decline of 27 paisas to Rs13.54 per share, SNGPL’s 6.30 million shares were traded with an increase of 20 paisas to Rs25.18 per share and 5.35 million shares of FFBL were traded with an increase of 93 paisas to Rs43.41 per share.


Shares turnover in the futures market improved to 25.26 million shares from 18.84 million shares traded in the previous session. PTCL July futures led the market with 5.15 million shares with an increase of 77 paisas to Rs25.79 per share; followed by NBP July futures with 3.47 million shares on an increase Rs2.63 to Rs55.31 per share.

Courtesy:  The News

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