KSE witnesses mixed trading

Amid volatility in global equity markets and commodity prices, Karachi Stock Exchange (KSE) witnessed a mixed week. However, the local bourse showed a resilient mood in last three sessions. The KSE-100 share index closed at 18,631.21 against 18,714.28 points of last week. The index shed 83.07 points while average trading volumes improved to 164 million shares, up by 15 percent WoW.
Commenting on the market performance, Furqan Ayoub, an analyst at JS Global said the week began on a bearish note as PTC''s lower than expected earnings and heightened political uncertainty and weak law and order ahead of upcoming elections weighed down on investor sentiment.
He said the KSE-100 index shed 352 points (1.9 percent) in the first two trading days of the week. However, attractive valuations lured investors back to the market which resulted in a quick recovery.
Samar Iqbal, another technical analyst at Topline Securities commented that the local bourse witnessed a volatile week. It traded in a range of 269 points to close down by 0.4 percent while volumes saw an increase of 31 percent to average Rs6.2bn.
"Foreign fund managers also remained net buyers of US $8.8 (Till 18th April). Most of the companies announced their March quarter results this week like Attock Group, PTC, DGKC, HBL, EFOODS. PTC," she added.
The key news highlights of the week were: Interim Prime Minister Mir Hazar Khan Khoso appointed Dr Shahid Amjad Chaudhry as an Advisor Finance and in charge of the Ministry of Finance while Waqar Masood Khan was appointed as Secretary Finance.
And, the C/A posted a deficit of US $513mn in March 2013, bringing 9MFY13 C/A deficit to US $1.0bn (vs. 9MFY12 deficit of US $3.0bn), contracting by 66 percent YoY. The improvement in 9MFY13 external account is largely attributable to the receipt of US $1.8bn from the US on account of Coalition Support Fund (CSF). Note, that the C/A deficit has exacerbated in 3QFY13 to US $1.2bn vis-à-vis a deficit of US $0.16bn in 2QFY13 and a surplus of US $0.34bn in 1QFY13.
Weekly average volume witnessed improvement of 15.4 percent to 163.65 million shares compared to 141.80 million a week earlier while market capitalisation remained under pressure, down by 1.0 percent to close at Rs4.555 trillion from Rs4.601 trillion.
Average daily value during the last week was good, increasing by 30.7 percent to close at Rs6.21 billion compared to Rs4.75 billion recorded during the previous trading-week.
Leading gainers during the week were National Bank of Pakistan, Pak Suzuki Motor Co, United Bank Ltd, MCB Bank, Adamjee Insurance, Hub Power Co, Engro Foods, Fauji Fertiliser, Lotte Pakistan PTA and Bank Al-Falah Limited.
According to details of last week''s trading sessions, KSE ended lower on Monday amid institutional profit-taking across the board and the benchmark-100 index lost 189.78 points to close at 18,524.50 points from 18,714.28 points.
Karachi share market witnessed one-more bear run Tuesday as the benchmark-100 index lost 162.63 points to close at 18,361.87 points against 18,524.50 points.
The local bourse managed to close on positive note on Wednesday as the benchmark-100 index gained 32.25 points to close at 18,394.12 points against 18,361.87 points.
Bulls established their grip at KSE on the back of continued support from foreign funds managers on Thursday. The benchmark-100 index gained 220.24 points to close at 18,614.36 points in comparison of 18,394.12 points.
On Friday, bulls again defeated bears at Karachi Stock Exchange and the benchmark-100 index gained 16.85 points to close at 18,631.21 points against 18,614.36 points.