Market watch: Index weighed down by oil, banks

Benchmark KSE-100 index falls 299.61 points

KARACHI: Pakistan equities moved lower again on Wednesday with the benchmark KSE-100 index settling near 32,150.

The wider market took cues from its regional peers and opened on a bearish note. However, declines were mainly led by select oil stocks that bore the brunt of an overnight sharp retreat in international crude.



At close on Wednesday, the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index fell 0.92% or 299.61 points to end at 32,144.59.

Elixir Securities analyst Ali Raza said earnings announcements kept interest alive. “Although the Oil and Gas Development Company (OGDC PA -2.8%) and Pakistan Petroleum (PPL PA -2.3%) both closed in red, Pakistan Oilfields (POL PA +0.84%) covered near 2% decline intra-day and closed higher after the company announced earnings and pay-outs that beat street consensus.

“Financials also continued to correct with reports of institutional selling in Habib Bank (HBL PA -1.5%). Meanwhile, Engro Corp (ENGRO PA 0.72%) closed higher ahead of earnings announcement and on news of progress on LNG project.

“We see the benchmark index to retest support at 32,000 with flows and regional markets guiding the market direction, however, earnings-specific interest will likely keep investor interest alive,” said Raza.

Meanwhile, JS Global analyst Ahmad Saeed Khan said the market continued to trend negatively for a second session led by profit-taking in the banking sector as the index closed -0.92%.

“Allied Bank Limited (ABL’s -2.22%) CY15 EPS clocked in at Rs13.37/share, lower than market’s expectation due to lower non-core income and higher impairments in investment.

“Major players of the sector remained in the red zone throughout the day as MCB Bank (-2.33%), Habib Bank Limited (HBL -1.50%) and United Bank Limited (UBL -1.40%) closed weaker.”



“Pakistan Oilfields (POL) EPS clocked in at EPS Rs15.50/share and a DPS of Rs15/share which was 24% higher than our expectation, therefore the stock closed up +0.84%,” said Khan.

“Material information announcement in the last hour of trading that PSO (+1.65%) has signed an LNG deal with Qatar invited investor’s interest,” he added.

Trade volumes increased to 169 million shares compared with Tuesday’s tally of 148 million.

Shares of 336 companies were traded on Wednesday. At the end of the day, 106 stocks closed higher, 212 declined while 18 remained unchanged. The value of shares traded during the day was Rs9.3 billion.

PTCL was the volume leader with 13.2 million shares, gaining Rs0.12 to finish at Rs15.07. It was followed by Jahangir Siddiqui and Company with 12.8 million shares gaining, Rs0.23 to close at Rs21.25 and TRG Pakistan Limited with 11.7 million shares, gaining Rs0.40 to close at Rs27.74.

Foreign institutional investors were net sellers of Rs426 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, February 11^th,  2016.

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