Karachi stocks nearly flat on lackluster earnings

Karachi stocks market ended little changed on Friday as lackluster earnings reports from fertiliser and others fed concerns that equities were overpriced after the index run to record highs earlier this week, dealers said.
They added that the investors also showed a reluctance to make aggressive bets during the last trading day of the week and a terror attack in Sindh also subdued the sentiments.
The benchmark KSE-100 Index closed up 35.13 points, or 0.10 percent, to 34,443.87 points against 34,408.74 points recorded in the last session. The highest index of the day remained at 34,618.56 points, while the lowest level of the day was recorded at 34,347.29 points.
KSE-30 Index fell by 61.70 points, or 0.28 percent, to 22,291.68 points against 22,353.38 points.
Turnover surged by 142 million shares to 348.78 million shares against 206.58 million shares, trading value increased to Rs23.63 billion against Rs14.67 billion while market capital rose to Rs7.79 trillion against Rs7.78 trillion recorded in the last session.
Of a total of 367 companies active in the session, 182 closed in green, 165 in red whereas 20 remained unchanged.
Faisal Bilwani, an analyst at Elixir Securities, said equities closed last day of the week flat with gains in fertilisers and selected cement and financials countered by declines in oil stocks that remained out of favor on gloomy earnings outlook.
Engro Fertilizers (up 4.7 percent) hit upper lock on rumored progress on secondary offering and expectation of an offer price higher than earlier anticipated while gossip of a possible dividend payout kept stock firm at day’s cap price.
“Even Prime Minister’s visit to the exchange during second session and his assurances to the investment community on continued economic reforms failed to generate any excitement near closing bell,” Bilwani said. “Turnover in wider market improved significantly however volumes were led primarily by small and mid cap names.”
Highest increase was recorded in shares of Rafhan Maize, which rose by Rs346.88 to Rs11,646.88/share, followed by Pak Tobacco that increased by Rs48.38 to Rs1,016.13/share.
Major decline was noted in shares of Wyeth Pak Ltd, which fell by Rs199.00 to Rs3,811.00/share, followed by Colgate Palmolive that decreased by Rs60.00 to Rs1,900.00/share.
Significant turnover was recorded in stocks of Fauji Fertilizer Bin Qasim Limited, Fauji Cement, Pak Elektron, Engro Fertilizers Ltd, Maple Leaf Cement, Cherat Cement, Pak Int Bulk, Fauji Fertilizer, K-Electric Ltd and DG Khan Cement.
Fauji Fertilizer Bin Qasim Limited remained the volume leader with 22.45 million shares with an increase of Rs2.12 to Rs52.24/share. It was followed by Fauji Cement with 22.34 million shares with an increase of Rs1.06 to Rs30.33/share.
Shares’ turnover in the futures market improved to 75.69 million shares from 52.45 million shares traded in the previous session.