Market watch: Index sees volatile, see-saw ride
Benchmark KSE-100 index falls 113.18 points
Benchmark KSE-100 index falls 113.18 points.
KARACHI:
The stock market witnessed a volatile trading session, rife with rumours and panic, as it concluded its sixth successive finish in the red, albeit with trimmed losses that, at one point, saw the benchmark-100 index slip close to 30,275 points.
However, at close on Tuesday, the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index finished 0.37% or 113.18 points lower to end at 30,564.50.
Elixir Securities analyst Faisal Bilwani said the positive open, led by gains in index heavy oils on higher international crude, was not sustained for very long as the wider market succumbed to selling pressure on thin volumes with reports of retail investors dumping holdings on fear of a meltdown.
“The KSE-100 index nosedived by 1.5% intraday that triggered institutional value buying bolstered by rumours of finance minister visiting the PSX to address concerns related to capital markets.
“Habib Bank (HBL PA -2.6%) closed lower despite announcing earnings and pay-out in-line with street estimates while oils led the late recovery on rumours that the much talked about large block offer by foreign institutions is no more in the market,” said Bilwani.
“After a sharp bounce from day’s lows on Tuesday, we expect stocks to open higher (on Wednesday) and inch up to test 31,000 during this week. Lagging financials and cements are likely to attract most attention while oils, in our view, will generate interest and track global crude,” he added.
Meanwhile, JS Global analyst Ahmad Saeed Khan said the positivity that was initially witnessed due to PESCO’s board approving Rs3/unit cut in power tariff for industrial units was quickly nullified by negativity of oil and gas sector as global crude oil prices failed to sustain its rally.
“MARI Petroleum announced its half year results today, EPS of Rs18.63 vs Rs23.76 last year brought pressure on the script closing Mari -2.97%.”
Pressure remained on the pharmaceutical sector on back of governments decision to import hepatitis C drugs along with notices issued to medicine prices cases, FEROZ (-3.28%) was the biggest laggard in the sector.”
“HBL (-2.43%) announced its full year result, registering an 11% growth YoY, result in line with market expectation invoked profit taking in the script. K-Electric (KEL +1.19%) rallied on the back of announcing better than expected half year result,” said Khan.
“Moving forward, we expect the volatility to persist and expect result based activity in upcoming sessions,” he added.
Trade volumes rose to 172 million shares compared with Monday’s tally of 133 million.
Shares of 338 companies were traded. At the end of the day, 116 stocks closed higher, 203 declined while 19 remained unchanged. The value of shares traded during the day was Rs6.8 billion.
TRG Pakistan Limited was the volume leader with 25.3 million shares, gaining Rs0.79 to finish at Rs24.29. It was followed by K-Electric Limited with 17.3 million shares, gaining Rs0.08 to close at Rs6.82 and Silk Bank Limited with 11.9 million shares, losing Rs0.01 to close at Rs1.50.
Foreign institutional investors were net sellers of Rs159 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 24th, 2016.
The stock market witnessed a volatile trading session, rife with rumours and panic, as it concluded its sixth successive finish in the red, albeit with trimmed losses that, at one point, saw the benchmark-100 index slip close to 30,275 points.
However, at close on Tuesday, the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index finished 0.37% or 113.18 points lower to end at 30,564.50.
Elixir Securities analyst Faisal Bilwani said the positive open, led by gains in index heavy oils on higher international crude, was not sustained for very long as the wider market succumbed to selling pressure on thin volumes with reports of retail investors dumping holdings on fear of a meltdown.
“The KSE-100 index nosedived by 1.5% intraday that triggered institutional value buying bolstered by rumours of finance minister visiting the PSX to address concerns related to capital markets.
“Habib Bank (HBL PA -2.6%) closed lower despite announcing earnings and pay-out in-line with street estimates while oils led the late recovery on rumours that the much talked about large block offer by foreign institutions is no more in the market,” said Bilwani.
“After a sharp bounce from day’s lows on Tuesday, we expect stocks to open higher (on Wednesday) and inch up to test 31,000 during this week. Lagging financials and cements are likely to attract most attention while oils, in our view, will generate interest and track global crude,” he added.
Meanwhile, JS Global analyst Ahmad Saeed Khan said the positivity that was initially witnessed due to PESCO’s board approving Rs3/unit cut in power tariff for industrial units was quickly nullified by negativity of oil and gas sector as global crude oil prices failed to sustain its rally.
“MARI Petroleum announced its half year results today, EPS of Rs18.63 vs Rs23.76 last year brought pressure on the script closing Mari -2.97%.”
Pressure remained on the pharmaceutical sector on back of governments decision to import hepatitis C drugs along with notices issued to medicine prices cases, FEROZ (-3.28%) was the biggest laggard in the sector.”
“HBL (-2.43%) announced its full year result, registering an 11% growth YoY, result in line with market expectation invoked profit taking in the script. K-Electric (KEL +1.19%) rallied on the back of announcing better than expected half year result,” said Khan.
“Moving forward, we expect the volatility to persist and expect result based activity in upcoming sessions,” he added.
Trade volumes rose to 172 million shares compared with Monday’s tally of 133 million.
Shares of 338 companies were traded. At the end of the day, 116 stocks closed higher, 203 declined while 19 remained unchanged. The value of shares traded during the day was Rs6.8 billion.
TRG Pakistan Limited was the volume leader with 25.3 million shares, gaining Rs0.79 to finish at Rs24.29. It was followed by K-Electric Limited with 17.3 million shares, gaining Rs0.08 to close at Rs6.82 and Silk Bank Limited with 11.9 million shares, losing Rs0.01 to close at Rs1.50.
Foreign institutional investors were net sellers of Rs159 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 24th, 2016.