KARACHI: The benchmark-100 index was unable to sustain a positive start as investors opted to book profit and stayed on the sidelines ahead of earnings announcements.
Retail participation was witnessed in mid-tier stocks with a dull mood taking the index below 34,000 after the start saw the KSE-100 gaining close to 200 points.
At close on Thursday, the Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.16% or 52.89 points to end at 33,921.96.
Elixir Securities, in its report, said the session was yet another dull day as only $48 million worth of shares exchanged hands on the benchmark KSE-100 index. “Stocks opened positive with index gaining 180+ points in the early hour as participants tracked regional markets,” stated the report. “However, the market couldn’t sustain its run as profit taking resulted in the index drifting to the red near day’s close.
“Despite the commencement of earnings announcements, institutions largely preferred to stay on sidelines due to lack of clarity on global equities and commodities, while retail activity in small and mid-caps continued to dominate the volume charts.”
Meanwhile, Abbasi Securities’ analyst Sammar Ali Shah said the index remained near its recent support level of 34,000. “Mixed investor sentiments continued to dominate the market,” said Shah. “We believe the upcoming announcement season will provide the required impetus for an uptick in volumes leading to increased activity.”
Trade volumes fell to 145 million compared with Wednesday’s 193 million shares.
Shares of 379 companies were traded on Thursday. At the end of the day, 184 stocks closed higher, 164 declined while 31 remained unchanged. The value of shares traded during the day was Rs7.2 billion.
Byco Petroleum was the volume leader with 12.2 million shares, gaining 0.09 to finish at Rs27.81. It was followed by Pak Elektron XD with 11.05 million shares, losing Rs0.23 to close at Rs81.82 and TRG Pakistan Ltd with 10.8 million shares, gaining Rs0.22 to close at Rs37.43.
Foreign institutional investors were net sellers of Rs297 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, October 16th, 2015.
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