Market watch: Index continues to tumble amid profit-taking

Benchmark KSE-100 index falls 290.78 points.

KARACHI: The index continued to tumble and ended near its level at the start of the year as investors continued to tread with caution amid several negative triggers.

At close on Tuesday, the Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.89% or 290.78 points to end at 32,467.04 points.

Elixir Securities, in its report, said the index started out positive before investors preferred to book profits ahead of the US Fed Reserve meeting.



Foreigners were net buyers on Tuesday, but most of their activity was concentrated in select stocks.

“Despite little foreign participation, fears of more selling loomed in the air, while the on-going rift between federal and provincial government over matters of security and operations further dented sentiments,” stated the report.

“Almost all major sectors closed in the red including cements, fertilisers and financials. Nearly one third of contribution in index decline came from United Bank (UBL PA -2.74%), MCB Bank (MCB PA -2.03%) and Engro Corporation (ENGRO PA -2.11%).

“We expect the market to trade volatile with investors staying cautious and closely monitoring regional developments and tracking foreign flows,” the report added.

Meanwhile, JS Global analyst Arhum Ghous said selling pressure came in the late hours as investors preferred to offload their positions ahead of the Fed meeting on December 16.

“Oil and Gas Development Company (OGDC +0.37%), Pakistan Petroleum Limited (PPL +3.97%) and Mari Petroleum (MARI +2.51%) were Tuesday`s major index movers.



“PPL gained on the back of announcement by the company of a hydrocarbon discovery at its exploratory well Hatim X-1, Gambat South Block,” said Ghous.

Trade volumes increased to 146 million shares compared with Friday’s tally of 145 million.

Shares of 335 companies were traded. At the end of the day, 99 stocks closed higher, 219 declined while 17 remained unchanged. The value of shares traded during the day was Rs9.2 billion.

TRG Pakistan Limited was the volume leader with 18.7 million shares, losing Rs1.71 to finish at Rs34.33. It was followed by Pak Elektron Limited with 8 million shares, losing Rs0.10 to close at Rs66.57 and Attock Refinery Limited with 7.8 million shares, losing Rs2.73 to close at Rs197.23.

Foreign institutional investors were net buyers of Rs855 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, December 16^th, 2015.

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