Home > Market watch : Hit by oil, index continues to ride low

Market watch : Hit by oil, index continues to ride low

Benchm­ark KSE-100 index falls 16.81 points.

Benchmark KSE-100 index falls 16.81 points.

Benchmark KSE-100 index falls 16.81 points.

KARACHI: Fall in international crude prices and lack of triggers meant the benchmark-100 index continued its lacklustre ride, ending marginally negative on the second day of the week.

Investors treaded with caution as the country still came to terms with the earthquake disaster on Monday. Results announcements poured in, but a lack of impetus meant bulls continued to remain on the sidelines.

At close on Tuesday, the Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.05% or 16.81 points to end at 33,843.83

Elixir Securities, in its report, said the wider market opened lower with index-heavy oils leading the decline owing to latest fall in crude with Oil and Gas Development Company (OGDC PA -1.14%), Pakistan Petroleum (PPL -0.57%) and Pakistan Oilfields (POL PA -2.96%) ending the day in red.

“United Bank Limited (UBL PA -0.12%) and Nishat Mills Limited (NML PA -0.63%) also closed slightly lower; with announcing weak quarterly earnings later on,” added the report.

“Volumes are expected to gradually pick up in days ahead with benchmark crossing 34,500, however, foreign selling remains a concern and continues to dampen the mood,” it added.

Meanwhile, JS Global analyst Arhum Ghous said the oil sector remained depressed as Iran prepares to increase shipments at a time when crude prices are at a six-year low amid a global glut by US shale boom.

“In the fertiliser sector, Fauji Fertilizer Bin Qasim Limited (FFBL) spiked down 2.72% after the company announced its quarterly financial result (EPS Rs0.19 against EPS Rs1.03 last year).”

“In the banking sector, Faysal Bank Limited (FABL) went down by 1.54% after the bank announced its 9M2015 result posting a PAT of Rs3.37bn (EPS Rs2.81), against PAT of Rs1.42bn reported in 9M2014,” he said, adding that earnings came below market expectations on lower-than-expected Non Interest Income (NII).

“United Bank Limited (UBL -0.12%) announced its 9M2015 result posting a PAT of Rs19.84bn (EPS: Rs16.21), up 16% YoY. Earnings growth was led by improvement in core income where NII posted 27% YoY growth, attributable to expansion in Net Interest Margins (NIMs),” Ghous added.

Trade volumes fell to 127 million shares compared with Monday’s tally of 147 million shares.

Shares of 369 companies were traded on Tuesday. At the end of the day, 161 stocks closed higher, 194 declined while 23 remained unchanged. The value of shares traded during the day was Rs7.9 billion.

Pak Elektron was the volume leader with 13.3 million shares, gaining Rs0.95 to finish at Rs77.10. It was followed by Pace Pakistan Limited with 11.7 million shares, gaining Rs0.23 to close at Rs7.67 and Byco Petroleum with 6.5 million shares, losing Rs0.47 to close at Rs25.93.

Foreign institutional investors were net sellers of Rs434 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, October 28th, 2015.

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