Market watch: Bloodbath continues as stocks tumble

Benchmark KSE-100 index falls 187.26 points

KARACHI: Despite positive sentiment in  global markets and gain in the price of international crude oil, the benchmark-100 index succumbed to selling pressure to continue its losing streak.

The index was off to a southward journey, gaining over 200 points in the opening hour before investors opted to cut short their position.

At close on Thursday, the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index fell 0.60% or 187.26 points to end at 31,282.44.



JS Global analyst Ahmed Saeed Khan said the market failed to break its bearish streak as the KSE-100 index closed 187 points down (-0.60%) for the third consecutive session.

“In spite of a positive opening and an intraday high of 238 points on recovering crude oil prices, the index ended negative,” said Khan. “Brent remained above $34/bbl throughout the day, pushing Oil and Gas Development Corporation and Pakistan Oilfield Limited to close +0.30% and +0.62%, respectively.

“Meanwhile, banking stocks witnessed mixed sentiments as HBL closed -1.20%, while MCB and NBP closed +0.67% and +1.31%, respectively.

“Engro (+1.69%) rallied after its announcement that it intends to potentially sell up to 24% of the shares of Engro Fertilizer (EFERT), which can have a one-time positive impact on Engro’s standalone earnings.”

Topline Securities, in its daily report, said weak sentiments prevailed at the local bourse on Thursday as a result of which the benchmark KSE-100 closed at 31,282 index level.

“Engro announced consolidated earnings of Rs9.4/share for 4Q2015 along with a final cash dividend of Rs7/share.”

Trade volumes rose to 130 million shares compared with Wednesday’s tally of 124 million shares.



Shares of 339 companies were traded. At the end of the day, 71 stocks closed higher, 245 declined while 23 remained unchanged.

The value of shares traded during the day was Rs6.6 billion.

FABL was the volume leader with 12.8 million shares, gaining Rs0.94 to finish at Rs15.53. It was followed by TRG Pakistan Limited with 8.1 million shares, losing Rs1.36 to close at Rs26.03 and Sui Southern Gas Pipeline Limited with 8 million shares, losing Rs1.46 to close at Rs27.80.

Foreign institutional investors were net sellers of Rs242 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 19^th,  2016.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.