Stocks recoup losses
The Karachi share market staged recovery on the back of a rally in select scrips on strong valuations amid thin trade Thursday. The day, however, saw the risk-averse equity investors to play safe as the city remained almost completely shut on the MQM call for mourning day. The KSE 100-share index gained 22 points to end at 34,408.74 points compared to 34,386.86 points Wednesday.
Copyright Business Recorder, 2015
The intraday high and low stood at 34,501.49 and 34,368.65 points, respectively. "Stocks showed recovery led by select scrips across-the-board on strong valuations," said analyst Ahsan Mehanti. The trading volume, he said, remained thin amid shutdown call by MQM.
Turnover at the ready-counter lowered by 12 percent at 206.5 million shares compared to 235 million of last session. "The market remained rangebound with declining volumes," said Topline analyst Samar Iqbal. The value of traded stocks contracted to Rs 14.6 billion from Rs 15.2 billion a day earlier. Of the total 376 scrips traded, 182 went up, 162 went down while 32 remained unchanged. The market capitalisation dipped to Rs 7.785 trillion from the previous Rs 7.796 trillion.
Pak Elektron with 14 million shares topped the list of best performers with a per share gain of Rs 1.86 to close at Rs 50.71. Others were Lafarge Pakistan 13.2 million, Cherat Cement 13 million, Adamjee Insurance 11.5 million, Engro Corporation 9.8 million, K-Electric 8.4 million, Engro Fertilizer 6.1 million, Maple Leaf Cement 6.1 million, Fauji Cement 5.8 million and Fauji Fertilizer Bin Qasim 5.8 million shares. Trading on the futures market, however, moved northward to stand at 52.4 million shares compared to the previous 43 million.
Predicting the market to remain rangebound going forward, Arhum Ghous at JS Research observed volatility in the day''s low trading. The analyst attributed the day''s lacklustre turnover to political unrest in the metropolis. Mehanti of Arif Habib Corp saw pressure in the oil stocks, due to international WTI Crude prices declining to a six-year low of $44 per barrel, led the KSE index to trade in a narrow range.
"Positive impact of lower interest rates on high leveraged Engro, falling fuel costs and coal prices on cement sector played a catalytic role in positive sentiment," he said. Samar said Engro shares rallied in expectation of a turnaround in the company''s 2015 profitability. Also, she said a fall in PPL December results was in line with investors'' expectations.