RECORDER REPORT
KARACHI: Volatility on Karachi Stock Exchange was so profound Tuesday that the benchmark index slipped below 33,000 points level driven by post earnings announcement profit-taking. The KSE 100-index remained in the negative territory throughout the day hitting the session's low of 32,811.64 points. It, however, showed a rare recovery at the fag end to close at 33,188.77 points, losing 25 points compared to Monday's 33,632.19 points.
"Stocks closed lower amid massive volatile trade at KSE post major earnings announcements," said Ahsan Mehanti of Arif Habib Corp.
The oil stocks battered after dismal earnings of PSO down 73pc for 1H'15 on inventory losses announced a day earlier, he added.
Mehanti said late session institutional interest in blue chips scrips in cement, fertilizer and energy sector on positive sentiments after favourable CPI inflation data for Feb'15 at 3.24 percent supported the index for a massive recovery at close.
Against the previous 160 million shares, trading volumes rose to a 'respectable' 212 million mark.
Having registered a net position of $ 4.09 million a day earlier, the offshore investors Tuesday offloaded their holdings as was evident from their net selling of $ 4.22 million.
The value of stocks traded swelled to Rs 13.3 billion from Rs 10.34 billion of the previous trading session.
Of the total 376 scrips traded, 159 gained, 199 lost and 18 remained unchanged. The market capital, however, inched down to Rs 7.496 trillion from Rs 7.519 trillion.
K-Electric led volumes with 19 million of its listed shares changing hands on the day. At Rs 7.95, the stock gained 19 paisa gain per share.
Other most traded scrips were Jahangir Siddiqui Company 18.7 million, Pak Elektron 17 million, Bank of Khyber 12 million, Maple Leaf Cement 10.5 million, Pakistan International Bulk Terminal 10 million, Engro Corp 9.8 million, Engro Fertilizer 6.8 million, DG Khan Cement 6.3 million and Fauji Fertilizer Bin Qasim 6.1 million shares.
Turnover on the futures market rose to 29 million contracts from 24 million of the previous session.
Muhammad Mobeen at JS Research said the market maintained its bearish momentum throughout the day with the exception of the last hour.
As a whole, the banking sector was the laggard, MCB losing 3.2 and NBP 2.4 percent. The cement sector remained upbeat as expectations of higher dispatch numbers prevailed amongst investors, CHCC gaining 4.1, LUCK 3.7, DGKC 4.0 and PIOC 2.0 percent.
"Due to unexpectedly low CPI number for Feb-2015 we are expecting an interest rate-cut of 50 basis points," said Mobeen. Moving forward, the analysts expect the market to remain uncertain.
