Market watch: Index ends negative for eighth successive session

Benchmark KSE-100 index falls 111.48 points

KARACHI: The index closed on a negative note yet again, recording a finish in the red for the eighth successive session.

At close on Wednesday, the Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share index closed at 32,154.17, falling 0.35% or 111.48 points.



Elixir Securities analyst Ali Raza said stocks opened positive continuing with Tuesday’s late day momentum while recovery in regional markets supported the upward drive in the early hours. “However, the market couldn’t sustain its gains and succumbed to selling pressure on institutional profit-taking and eventually close the day in red.

“Declines were led by index heavy oils and financials with Pakistan Petroleum Limited (PPL, -1.56%), MCB Bank (MCB, -0.92%), Pakistan Oilfields Limited (POL, -2.94%) and Oil and Gas Development Company Limited (OGDC, -1.05%) doing most of the damage and cumulatively contributing more than 50% points to index decline,” he explained.

“Meanwhile, steel play International Steels Limited (ISL, +4.97%) hit the upper price limit on news of government imposing anti-dumping duty on one of its end-products.

“We see lacklustre market in near term with benchmark index trading in a range until smart money flows in to take advantage,” cautioned Raza, adding that slow progress of the on-going broker investigation will keep participants cautious and on the side-lines.

Meanwhile, JS Global analyst Ovais Ahsan said the market opened on a positive note following the global market trend but failed to sustain the bullish momentum.

“Investor interest was seen in the pharmaceutical sector as ABOT (+1.77%), FEROZ (+0.88%) and SEARL (+1.53%) closed in the green,” said Ahsan.

“Selling in strength was seen in the cement sector, although major scrips closed positive.

“Moving forward, we expect the market to be in corrective mode from here following regional and European markets,” noted Ahsan.

Trade volumes fell to 115 million shares compared with Tuesday’s tally of 127 million.

Shares of 329 companies were traded. At the end of the day, 101 stocks closed higher, 200 declined while 28 remained unchanged. The value of shares traded during the day was Rs6.76 billion.



TRG Pakistan Limited was the volume leader with 14.8 million shares, losing Rs1.54 to finish at Rs29.37. It was followed by Jahangir Siddiqui and Company with 6.0 million shares, losing Rs0.99 to close at Rs18.61 and Fauji Cement with 4.1 million shares, losing Rs0.03 to close at Rs37.94.

Foreign institutional investors were net buyers of Rs15.7 million worth of shares during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited (NCCPL).

 

Published in The Express Tribune, January 14^th, 2016.

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