RECORDER REPORT
KARACHI: After two bearish sessions, the Karachi share market Wednesday closed on a positive note and the benchmark KSE-100 index gained 35 points to close at 28,665 points.
Samar Iqbal, an analyst at Topline, said the market remained mixed due to ongoing uncertainty on the political front due to protest in Islamabad, however at the end of the session, KSE-100 index increased by 0.12 percent.
Volume showed a slight decline to 141 million shares, while the value increased to $73 million (PKR 7.26 billion), she said.
FCCL remained volume leader, however the share price remained under pressure due to lower than expected result announcements. ENGRO also announced below expectation June earnings and payout as the price fell by 1.45 percent, she maintained.
“Stocks showed recovery led by oil and telecom scrips after reports on Moody’s positive assessment on government despite political standoff and the IMF revised GDP growth forecast for the fiscal year 2015 at 4.3 percent,” said Ahsan Mehanti, an analyst at Arif Habib.
Retail investors remained cautious over prevailing political crisis. Institutional interest remained in blue chip stocks amid support from state-owned institutions, he added.
In addition, expected ease in circular debt through tariff rationalisation measures and improved data for petroleum in Jul ‘14 played a catalytic role in the bullish activity, Mehanti said.
During the intra-day trading, the market moved in red and green zones and the KSE-100 index also touched 28,894 points highest and 28,435 points lowest level. Despite positive trend, volume at the ready counter declined to 141 million shares compared to 145 million in last session.
Market capitalisation increased by Rs 4 billion to Rs 6.702 trillion against previous Rs 6.698 trillion. Trading took place in 333 companies, of which 174 closed in green zone, 136 in red while share prices of 23 companies remained unchanged.
Analysts at JS said the KSE-100 Index witnessed a rollercoaster session to close within the green zone. Rumours of continuation by foreign participation provided confidence to the locals to participate in the market.
He said that FCCL declared a cash dividend of 0.75 per share, ie, 7.5 percent, along with the disappointing earnings of Rs1.80 per share.
“The market remains in a confused state as we approach the latter half of the protests; therefore we recommend investors to remain defensive until the protests are completely wiped out of the equation,” he added.
Among top 10 volume leaders, 6 posted a positive trend. Fauji cement emerged the volume leader on 14.7 million shares, losing Re 0.72 to close at Rs 19.17. B.O.Punjab stood second, gaining Re 0.26 to close at Rs 8.07 on 10.6 million shares. Pak Elektron Ltd ranked third with 8.25 million shares to close at Rs 28.51, up Re 0.90. With a trading volume of 7.6 million shares, P.T.C.L gained Re 0.34 to Rs 24.16.
Maple Leaf Cement declined by Re 0.16 to close at Rs 26.55 on 6.1 million shares. Some 5.8 million shares of D.G.K Cement were traded and the scrip closed at Rs 74.05, down Re 0.29. Lotte Chemical lost Re 0.08 to Rs 6.83 on 4.8 million shares. Adamjee Insurance moved up by Re 0.86 to Rs 49.33 on 4.8 million shares.
With a trading volume of 4.3 million, Lafarge Pak moved up by Re 0.01 to close at Rs 15.27 and Jah. Sidd. Co. closed at Rs 8.60, up Re 0.11 on 3.5 million shares.
Rafhan Maize and Bata (Pak) were the top gainers with Rs 506.00 and Rs 102.00 to close at Rs 10,626.00 and Rs 3,387.00, respectively. Siemens Pakistan and Nestle Pak were the top losers with Rs 53.13 and Rs 15.00 to close at Rs 1,061.70 and Rs 7,300.00, respectively.
