Benchmark KSE 100-share Index loses 44.37 points. PHOTO: FILE
KARACHI: Pakistan equities traded range bound on Tuesday with no clear direction in the wider market that closed marginally negative with the benchmark KSE 100-share Index swinging between the green and red zones.
At close, the Pakistan Stock Exchange’s (PSX) benchmark index registered a decrease of 0.11% or 44.37 points to end at 39,208.88.
Elixir Securities, in its report, said that soon after the opening bell, the wider market entered into negative territory with exploration and production (E&P) stocks tracking the decline in global crude prices, while financial and cement shares were lower on profit-taking.”
Sector-specific and selective buying was witnessed throughout the day with Pakistan State Oil (+5%) leading and hitting the upper price limit on earnings excitement.
“Limited institutional participation was obvious with small and mid-caps leading the volumes on retail-driven activity,” said the report.
“We see selective interest to continue with investors largely cautious ahead of next week’s futures roll-over, however, earnings and pay-outs will likely drive the wider market to re-test recent highs before the close of this month,” said Elixir Securities analyst Faisal Bilwani.
Meanwhile, JS Global analyst Nabeel Haroon said range-bound activity was recorded in the market as the index traded between an intraday high of 39,323 points and an intraday low of 39,162 points to finally close at 39,209.
“SSGC extended its previous day’s gain to close at its upper circuit on the back of news that the government has decided to increase electricity and gas tariffs this month to meet revenue requirements as per commitment to the IMF.”
Despite a nominal surge in yen’s value, the automobile sector continued its euphoric rally, as the sector closed higher than the previous day. Top performers of the sector were Pak Suzuki Motor Company (+3.1%) and Honda Atlas Cars (+2%).
Nishat Chunian Limited (+2.2%) gained on the back of rising yarn prices which would benefit yarn spinners, the analyst said.
“Moving forward, we expect some consolidation in the market though dips that should be availed as opportunities to buy ahead of the results season,” said Haroon.
Trading volumes rose to 178 million shares compared with Monday’s tally of 172 million.
Shares of 357 companies were traded. At the end of the day, 145 stocks closed higher, 189 declined while 23 remained unchanged. The value of shares traded during the day was Rs10.9 billion.
Engro Fertilizers was the volume leader with 13.6 million shares, gaining Rs0.56 to finish at Rs66.94. It was followed by Sui Northern Gas Pipelines with 13.3 million shares, losing Rs0.38 to finish at Rs42.33 and Pakistan Telecommunication Company Limited with 9.6 million shares, losing Rs0.01 to close at Rs16.08.
Foreign institutional investors were net buyers of Rs168 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, July 20th, 2016.
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