KARACHI - Stocks finally broke the losing streak on Friday when the KSE-100 index recovered 17.47 points to close at 28691. 84points.
Market gained some ground above 28,600-level after a continuous fall of 3pc in last few trading sessions. PTC continued its slide after Government dissolved International Clearing House, while continued selling pressure was witnessed in PSO amid uncertainty over mounting circular debt. Cements and banking stocks remained in green ahead of better earnings expectations for June-quarter. PSMC closed at 5pc upper circuit yet again after Punjab Government announcement of Yellow Cab Scheme. PTC remained the volume leader with 20m shares followed by FCCL with 11m shares and NBP with 5.9m shares. Of 322 active companies, 173 closed in green while 125 in negative. The KSE- All share index slightly shed 7.10 points or 0.03 percent and closed at end of day at 21231.62 points as compared to 21238.72 points on Thursday, KSE-30 Index dropped by 11.40 points or 0.06 percent and concluded at 19705.78 points while KMI- 30 index sank by 77.75 points or 0.17 percent and at end of the day closed at 45993.30 points. High and low were 28841.39 and 28623.99 respectively.
Analyst Ahsan Mehanti at Arif Habib Corporation state the equity market rose slightly led by oil, cement and banking scrips recovering from panic selling on Thursday amid easing political noise.
Dismal current account deficit data of over $2.57b Jul-May’14, withdrawal of ICH in telecom sector impacted the sentiments.
Withdrawal of GIDC on cement sector, expected higher Net Interest Margins in banking sector on participation in over Rs49.5b Govt. Ijara Sukuk auction today and higher international oil prices on probable US action on militancy in Iraq played a catalyst role in positive close at KSE.
Samar Iqbal at Topline Securities observed that market lost 3pc week-on-week basis with 30pc falling volume of 152m shares (avg. value 27pc down to Rs7b). Decline in global equity markets and military operation in North Waziristan forced market participants to stay cautious, while increase in local political noise after clashes in Lahore also dented sentiments. Institutional activity also decreased ahead of June quarter-end. PTC witnessed selling pressure after Government dissolved International Clearing House, while PSO also declined amid uncertainty over mounting circular debt.
Cements and banking stocks remained in green ahead of better earnings expectations for June-quarter. PSMC remained the star performer of the week after Punjab Government announcement of Yellow Cab scheme.
Going forward, politics, future rollover week, June quarter-end, approval of federal budget FY15 on June 21 (tomorrow) and prospective date for IMF meeting will be major events driving investor sentiments.