Market watch: Index ends lower as volume, value increase

Benchmark KSE-100 index falls 254.99 points

KARACHI: Volumes gained on earnings announcement, but volatile trading meant the benchmark-100 index was unable to sustain its morning gains as equities succumbed to profit-taking

Equities closed negative but activity in the wider market noticeably improved as turnover on the KSE-100 index saw an increase of around 25% compared to last week’s average.



At close on Tuesday, the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index fell 0.80% or 254.99 points to end at 31,673.16.

Elixir Securities analyst Ali Raza said stocks opened gap up tracking higher regional markets but succumbed to reports of institutional selling.

“Despite the earnings announcements by key index names and results coming inline or better than expectations, the wider market succumbed to selling pressure.

“Index heavy names such as Habib Bank Limited (HBL PA -1.18%), Fauji Fertilizer Company (FFC PA -1.82%), Lucky Cement Company Limited (LUCK PA -1.93%), Engro Corporation (ENGRO PA -1.72%), Muslim Commercial Bank (MCB PA -1.27%) and Dera Ghazi Khan Cement (DGKC PA -2.61%) all closed in the red and contributed most points to the index declines.

“We expect the market to trade volatile with institutional flows primarily guiding the wider market in days ahead,” Raza added.

Meanwhile, JS Global analyst Arhum Ghous was of the view that the market opened on a positive note as the index rallied and made an intraday high of 231.11 points but failed to sustain the level and succumbed to profit taking.

“Sui Northern Gas Pipeline Limited (SNGP +0.16%) continued its upward trajectory as the gas utility company closed in the green zone for the second consecutive session.

“Fauji Cement Company Limited FCCL (+0.20%) gained as the company posted better than expected result of EPS 1HFY16 of Rs2.09 and a lucrative DPS of Rs1.75.

“Oil and Gas Development Company (OGDC -0.74%) and Pakistan Petroleum Limited (PPL -0.15%), both closed in the red zone as they posted 1HFY16 result slightly below the market expectation.“DGKC (-2.61%) failed to garner investor interest despite posting better than expected result of 1HFY16 EPS Rs9.31,” said Ghous. Trade volumes rose to 166 million shares compared with Monday’s tally of 89 million shares.

Shares of 340 companies were traded. At the end of the day, 100 stocks closed higher, 216 declined while 24 remained unchanged. The value of shares traded during the day was Rs9.4 billion.



Sui Northern Gas Pipeline Limited was the volume leader with 14.1 million shares, gaining Rs0.04 to finish at Rs25.04. It was followed by Fauji Cement with 13 million shares, gaining Rs0.08 to close at Rs39.56 and Dewan Motors with 12.5 million shares, gaining Rs0.99 to close at Rs9.08.

Foreign institutional investors were net sellers of Rs305 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, February 17^th,  2016.

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