Benchmark KSE 100-share Index drops 134.46 points. PHOTO: FILE
At close on Monday, the Pakistan Stock Exchange’s (PSX) benchmark index recorded a fall of 0.34% or 134.46 points to end at 39,017.32.
Elixir Securities, in its report, said the market opened sideways and entered into the negative territory early in the day with index-heavy exploration and production stocks weighing on the KSE-100 index following a slide in global crude prices.
“Soon afterwards, index names namely Oil and Gas Development Company (-1.8%), Pakistan Petroleum Limited (-2%), Hub Power Company (-0.6%) and Kot Addu Power Company (-1.5%) with possibility of selling by foreigners spooked investors and further dented market sentiment, resulting in low volumes for the rest of the day.”
Overall, volumes and the traded value on the benchmark index plunged 44% and 38% respectively compared to last week’s average with the on-going futures rollover week expected to keep participation at minimum levels in the market.
“Flows will continue to guide direction and any large outflow from foreign investors will limit excitement during the results season in the short run,” commented Elixir Securities analyst Faisal Bilwani, adding selective earnings and pay-out-driven interest would likely keep United Bank Limited, Fauji Fertilizer Bin Qasim (FFBL) and Honda Atlas Cars on the radar ahead of their result announcements today (Tuesday).
Meanwhile, JS Global analyst Ahmad Saeed Khan said volatility prevailed on the first day of rollover week as the index shed around 134 points to close at 39,017.
“In anticipation of lower revenues this quarter in comparison to previous quarters, the fertiliser sector remained under pressure. FFBL (-0.87%) and Fauji Fertilizer Company (-0.97%) were the biggest index movers of the sector and are due to announce their half-year results today (Tuesday) and the day after respectively,” said Khan.
Pak Suzuki Motor Company (+2.17%) and Indus Motor (+0.93%) were top performers of the auto sector that rallied on the back of depreciating yen.
“The overall sentiment of the market remains positive but caution during the rollover week and the result season is advised,” added Khan.
Trading volumes fell to 166 million shares compared with Friday’s tally of 220 million.
Shares of 334 companies were traded. At the end of the day, 144 stocks closed higher, 172 declined while 18 remained unchanged. The value of shares traded during the day was Rs9.8 billion.
Byco Petroleum was the volume leader with 18.9 million shares gaining Rs0.05 to finish at Rs23.46. It was followed by Agritech Limited with 14.2 million shares gaining Rs1 to close at Rs12.37 and Pak Refinery with 10.5 million shares gaining Rs1.45 to close at Rs48.70.
Foreign institutional investors were net buyers of Rs822 billion during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, July 26th, 2016.
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