KSE-100 Index: Daily Overview – October 25

After a rather long weekend, the KSE-100 index continued from where it left in the previous week, shredding 8 points to close at 11,517 points on Tuesday, October 25.

Pakistan People Party’s former chairperson and wife of Zulfiqar Ali Bhutto, Begum Nusrat Bhutto, passed away on Sunday, October 23 in Dubai. The government, in respect, decided to announce a public holiday on Monday, October 24. There was a general belief throughout the nation that a holiday at this point in time does not serve anything more than just a political motive.

Volumes generally remained high in the last week, but fell down to 69 million in the first session of this week, indicating that the activity throughout the week might stay on the lower side. The index saw 112 million shares being traded on October 19, but the trend thereafter has not been impressive.

After giving a gap-opening of around 100 points, profit taking was observed in the market and thus the index could not close on a positive note, finishing in the red zone yet again.

There were a few result announcements during the trading session, but none of them were above or beyond what analysts had already expected. DG and Lucky cement announced earnings of Rs. 0.73 and Rs. 4.66 respectively, but these were in-line with the expectations and thus did not instigate a rally in the market.

Mr. Ali Nadeem, Manager of Equity Sales at First National Equities, agreed with the notion and added that had the results been above expectations, the market would surely have ended or closed on a positive note. He added that PPL declared earnings of Rs. 7.50 for the quarter, but this did not have any impact on the scrip.

Ali added that there was no pay-out by any company and this was a major reason for a lull in the market.

For tomorrow, Ali anticipated that FFBL’s result might direct the movement of the index. A positive result, i.e. a pay-out of Rs. 2.5 – 3, might instigate a rally in the scrip. However, a lower pay-out might force the investors to continue with the prevailing trend in the market.

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Posted by Hammad Malik on Oct 25 2011. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry