Benchmark KSE-100 index falls 203.46 points. PHOTO: AFP/FILE
Volume and value on the KSE-100 index was noticeably down as almost all sectors turned negative with little excitement keeping investors interested.
At close on Wednesday, the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index fell 0.64% or 203.46 points to end at 31,469.70.
Elixir Securities analyst Ali Raza said declines in early trade were led by index heavy E&Ps plays, namely Oil and Gas Development Company (OGDCL PA -1.7%), Pakistan Oil Fields (POL PA -1.57%), Pakistan Petroleum Limited (PPL PA -0.86%) erased more than half of their morning losses by day’s close.
“ENGRO Corporation (ENGRO PA +0.54%) also recovered nearly 1.5% from its day’s low and closed positive ahead of its earnings announcement.
“Meanwhile, Hub Power Company (HUBC PA -0.75%) churned volumes of over 2 million shares on Wednesday after news of tariff approval and announcing earnings that came in line with the street consensus. “We see the market to remain choppy and volatile this week while participants await institutional flows to set market direction,” added Raza.
Meanwhile, JS Global analyst Ahmed Saeed Khan said volatility continued in Wednesday’s session as the index could only make a high of 33 points and closed 203 points down.
“The result season failed to ignite much excitement as key companies missed earnings estimates. UBL Bank missed estimates in its full year announcement as the stock came down 0.57%.
“Habib Bank Limited (HBL -1.43%) and Fauji Fertilizer Company (FFC -2.33%) were the major index movers. The fertiliser sector continued to be haunted by declining urea prices and prospects of a rise in gas prices,” said Khan.
“Profit taking was witnessed in the banking sector as all major players stayed in the red zone. We expect the bearish trend of the market to remain intact for the short term,” he added.
Trade volumes fell to 124 million shares compared with Tuesday’s tally of 167 million shares.
Shares of 313 companies were traded. At the end of the day, 90 stocks closed higher, 208 declined while 15 remained unchanged. The value of shares traded during the day was Rs5.4 billion.
Dewan Motors was the volume leader with 13.2 million shares, gaining Rs0.08 to finish at Rs9.16. It was followed by Worldcall Telecom with 11.1 million shares, gaining Rs0.42 to close at Rs1.95 and TRG Pakistan Limited with 10 million shares, losing Rs0.43 to close at Rs27.39.
Foreign institutional investors were net sellers of Rs203 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, February 18th, 2016.
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