KSE-100 Index: Daily Overview – November 2

Stability returned to the KSE-100 index as it survived pressure across the board to close at 11,746 points, shedding only 17 points on Wednesday, November 2. Volumes continued to plunge, dropping down to 63.86 million after clocking the 84.4 million mark
of Tuesday, November 1.

There was no major attraction for investors today, the only news being a possible reversal of the Rs. 400/bag increase in urea prices which had triggered a rally in the fertiliser sector. With the outbreak of this news, a selling trend was observed in throughout
the sector, FFC and Pak Arab Fertiliser leading the pack.

FFBL sustained pressure, but could not avoid closure in the red zone. ENGRO, on the contrary, performed against the sentiment of the sector, largely due to a breakthrough in negotiations with authorities on resumption of gas supply. It will be vital to mention
that ENGRO had already incorporated the Rs. 400 deduction in the prices of urea and thus the news had little effect on the scrip.

Mr. Ali Nadeem, Manager of Equity Sales at First National Equities termed the market to be range-bound and asserted that there is no positive news in the market to trigger activity. Ali continued that with the result season already over, an improvement in
exchange rate with respect to US dollar or a step towards political stability can instigate activity in the market.

Attock Refinery was the only company to show positive movement, attracting investors, both local and foreign. A major reason for this has been the favourable result announcement made by the company in the last month, where earnings were above what market
had expected. The scrip is attracting various stakeholders and institutions and it seems that activity in this scrip will continue for the next few sessions, on a minimum.

Expressing his thoughts on extremely low volumes, Ali pointed out that investors do not have any incentive of investing at this point in time, especially with the Islamic festival of Eid around the corner. The investors are adopting a cautious approach and
activity is expected to increase once the market re-opens on Thursday, November 10. He added that activity will also increase once the dates for book closures of companies draw near.

The index is expected to be range-bound for tomorrow as well, with no positive news expected.

Short URL: https://www.newspakistan.pk/?p=2515

Posted by Hammad Malik on Nov 2 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