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Equities remain volatile

The Karachi Stock Exchange remained volatile during the last week, ending on October 17, and the benchmark KSE-100 index closed below 30,000 points level. With an improved trading activity, the KSE-100 index shed 276 points (weak on weak) to close at 29,883 points end of the week compared to 30,159 points a week earlier. An average daily value during the last week in term of dollar reached $95.95 million, surged by 31 per cent.

Analysts at the JS said that Pakistan''s equity markets opened the week on a positive note over Pakistan and IMF agreeing to club the fourth and fifth reviews, with a possible disbursement of $1.1 billion by December-end.

However, plunging commodity prices and sell-off in the regional markets (down 1.9 per cent WoW) wiped off early gains and as a result the index heavy-weight oil sector dragged down the benchmark KSE-100 index by 0.9 per cent WoW.

On the other hand, the auto sector extended its bull run in anticipation of favourable auto policy. The week also saw the start of the corporate result season, with Pakistan Telecom (PTC) announcing lower than expected earnings, they said.

Trade deficit rising by 45 per cent YoY in 1QFY15, September 2014 remittances clocking in at 34 per cent YoY higher, tax collection falling short by Rs20 billion in 1QFY15 and the government mopping up Rs117 billion in T-Bills auction were some other key highlights of the week.

During the week under review, the market capitalisation declined by Rs 47 billion to reach Rs 6.955 trillion down from Rs 7.001 trillion. Despite a negative trend session, average daily volume posted an upward trend and increased by 24 per cent to 216 million shares during the last week compared to 175 million shares a week earlier. Similarly, with an increase of 31 per cent average daily value stood at Rs 9.57 billion against Rs 7.30 billion in the previous week.

Analysts at Alternate Research said that oil and gas sector continued to drag down the equities during the last week. The declining international oil prices created pressure among foreign investors as the index witnessed foreign selling in three days of the week, they added.

Talking about the market outlook analyst, the volumes are expected to increase in coming days as major companies will release their quarterly results in the next week

Among five trading sessions of the week, the market witnessed three days closed lower and the second day, the market showed recovery.

Sentiments at the Karachi share market were positive on the first trading day of the week and the benchmark KSE-100 index gained some 236 points to reach 30,394 points.

After touching an all-time high of 30,518 points during intraday trading, the Karachi share market on Tuesday closed negative on profit taking in automobile sector. On the second trading day of the week, the market opened on positive note but failed to sustain above the all-time high level and the benchmark KSE-100 index lost 39 points to close at 30,355.

The Karachi share market remained volatile on Wednesday on profit taking in selected scrips and the benchmark KSE-100 index lost another 234 points to close at 30,121.

The Karachi share market on Thursday witnessed another dull session and the KSE-100 index declined by 138 points to close at 29,982 points.

Sentiments at the Karachi share market remained negative and the KSE-100 index lost another 99 points to close at 29,883 points.

Copyright Business Recorder, 2014