Market watch: Index ends almost flat as volatile trading dominates

Benchmark KSE-100 index rises 19.65 points

KARACHI: The benchmark-100 index closed little changed after trading volatile within a band of 180 points, managing to sustain its level over the 40,000-point barrier.

At close, the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index registered an increase of 0.05% or 19.65 points to finish at 40,050.17.



“The start to the trading day was a positive one as index heavy oils opened gap up tracking gains in global crude,” said Elixir Securities in its report. “The benchmark KSE-100 index hit a new record high above 40,200 level, but the wider market struggled to find a clear direction and skidded lower in absence of any concrete buying interest.

“Moreover, Exploration and Production (E&P) finished the day with trimmed gains as participants resorted to profit-booking with Pakistan Oilfields (POL PA +0.5%) marginally positive after full-year earnings were announced slightly below estimates, while Attock Cement (ACPL PA -1.4%) succumbed to selling pressure and closed red despite announcing higher-than-expected earnings and payout.

“Index heavy Hub Power (HUBC PA -2.5%) dented KSE-100 index the most on reported institutional selling, however, the index managed to hold the 40,000-point level firm with Lucky Cement (LUCK PA +1%) and select index names supporting and keeping downside in check,” the report added.

“Most volumes as expected were in small and mid-caps as retail investors continue to aggressively churn on day trade opportunities.

“In absence of any major trigger, we see earnings to keep select stocks in limelight with flows continuing to guide market direction. We expect benchmark to hover 40k in a narrow range of 200-300 points,” commented Elixir Securities analyst Faisal Bilwani.

Meanwhile, JS Global analyst Nabeel Haroon said the index opened on a positive note and rallied to make an intraday high of 181 points but came under selling pressure during the latter hours.

“OGDC (+0.40%), POL (+0.52%) and PPL (+0.01%) in the E&P sector extended their previous day gains as crude oil surged to trade around $46/barrel level on the back of expectations that talks between oil producers will result in stability in crude oil prices.



“Attock Refinery Limited (ATRL +4.18%) gained as the refiner posted better than expected result for its FY16. In its financial result, company posted consolidated earnings of Rs42.20/share along with a dividend of Rs5/share.”

“Major contribution to this consolidated earnings came from reversal in impairment on investment in associated company booked by the company last year,” said Nabeel.

“Moving forward, we advise a cautious approach as we expect market to consolidate at current levels,” he added.

Trade volumes rose to 240 million shares compared with Monday’s tally of 216 million shares.

Shares of 399 companies were traded on Tuesday. At the end of the day, 186 stocks closed higher, 188 declined while 25 remained unchanged. The value of shares traded during the day was Rs13.2 billion.

Dewan Cement was the volume leader with 18.4 million shares, gaining Rs0.06 to finish at Rs18.40. It was followed by K-Electric Limited with 17.1 million shares, losing Rs0.06 to close at Rs8.56 and Dewan Salman with 13.3 million shares, losing Rs0.32 to close at Rs3.11.

Foreign institutional investors were net sellers of Rs279 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

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

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