Market watch: 10-day positive streak ends, index ends below 33,000
Benchmark KSE-100 index falls 74.87 points
PHOTO: AFP/FILE
KARACHI:
The benchmark-100 index snapped its 10-day positive streak and closed marginally negative after range-bound and lacklustre trading dominated proceedings.
Select stocks invited investor interest, but the wider market tracked regional peers and global crude prices and ended below the 33,000-point mark.
At close on Wednesday, the Pakistan Stock Exchange’s (PSX) KSE-100 index lost 0.23% or 74.87 points to end at 32,957.98.
Elixir Securities analyst Ali Raza said stocks kicked off on a dull note following lower regional markets, while oils turned out to be a major drag after Tuesday’s decline in global crude.
“Investors; primarily institutions, awaited more clarity on flows and stayed on side-lines with major sectors ending in red.
“Most interest was seen in small and mid-cap plays on retail driven speculative activity; with Bank of Punjab (BOP PA +0.94%) and Sui Southern Gas Company (SSGC PA -0.79%) topping the volumes chart.
“Wednesday’s highlight were Fauji Fertilizer Bin Qasim (FFBL PA +3.7%) that added to Tuesday’s gain on euphoria over early launch of its meat business, and Engro Foods (EFOODS PA +0.03%) that witnessed profit-taking after gaining 25% since the start of March,” said Raza.
“We see market to consolidate at current levels, however, participants will continue to closely monitor the foreign flows that may trigger another rally in days ahead,” he added.
Meanwhile, JS Global analyst Arhum Ghous said profit taking remained a recurring theme as local investors remained cautious on the back of weakness in global markets.
“The banking sector led the decline with the two index heavy weights Habib Bank Limited (HBL -2.04%) and United Bank Limited (UBL -2.25%) succumbing to selling pressure.”
“Fauji Fertilizer Bin Qasim Limited (FFBL +3.70%) led the fertiliser sector as prices of phosphoric acid, which is a key raw material for DAP fertiliser, have come sharply down of late,” he said.
“Cherat Cement Company (CHCC +4.99%) and Fauji Cement Company Limited (FCCL +1.06%) gained in the cement sector as the economic coordination committee approved projects worth Rs83 billion, including road projects which should mean well for cement demand in general. Cherat will also have a first movers’ advantage to gain from rising cement demand as its new plant is likely to come on line early next year.
“The oil sector, which has been the driver of the recent bull run, remained muted as Oil and Gas Development Company (OGDC -0.38%) and Pakistan Oil Fields (POL -0.86%) closed in the red on the back global oil prices taking a breather after hitting new year to date highs,” said Ghous.
Trading volumes fell to 204 million shares compared with Tuesday’s tally of 216 million.
Shares of 327 companies were traded. At the end of the day, 132 stocks closed higher, 178 declined while 17 remained unchanged. The value of shares traded during the day was Rs9 billion.
The Bank of Punjab was the volume leader with 14.4 million shares, gaining Rs0.08 to finish at Rs8.57. It was followed by Sui Southern Gas Company with 12.1 million shares, gaining Rs0.22 to close at Rs27.96 and Dewan Cement with 11.8 million shares, gaining Rs0.96 to close at Rs12.02.
Foreign institutional investors were net sellers of Rs131 million worth of shares during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, March 10th, 2016.
The benchmark-100 index snapped its 10-day positive streak and closed marginally negative after range-bound and lacklustre trading dominated proceedings.
Select stocks invited investor interest, but the wider market tracked regional peers and global crude prices and ended below the 33,000-point mark.
At close on Wednesday, the Pakistan Stock Exchange’s (PSX) KSE-100 index lost 0.23% or 74.87 points to end at 32,957.98.
Elixir Securities analyst Ali Raza said stocks kicked off on a dull note following lower regional markets, while oils turned out to be a major drag after Tuesday’s decline in global crude.
“Investors; primarily institutions, awaited more clarity on flows and stayed on side-lines with major sectors ending in red.
“Most interest was seen in small and mid-cap plays on retail driven speculative activity; with Bank of Punjab (BOP PA +0.94%) and Sui Southern Gas Company (SSGC PA -0.79%) topping the volumes chart.
“Wednesday’s highlight were Fauji Fertilizer Bin Qasim (FFBL PA +3.7%) that added to Tuesday’s gain on euphoria over early launch of its meat business, and Engro Foods (EFOODS PA +0.03%) that witnessed profit-taking after gaining 25% since the start of March,” said Raza.
“We see market to consolidate at current levels, however, participants will continue to closely monitor the foreign flows that may trigger another rally in days ahead,” he added.
Meanwhile, JS Global analyst Arhum Ghous said profit taking remained a recurring theme as local investors remained cautious on the back of weakness in global markets.
“The banking sector led the decline with the two index heavy weights Habib Bank Limited (HBL -2.04%) and United Bank Limited (UBL -2.25%) succumbing to selling pressure.”
“Fauji Fertilizer Bin Qasim Limited (FFBL +3.70%) led the fertiliser sector as prices of phosphoric acid, which is a key raw material for DAP fertiliser, have come sharply down of late,” he said.
“Cherat Cement Company (CHCC +4.99%) and Fauji Cement Company Limited (FCCL +1.06%) gained in the cement sector as the economic coordination committee approved projects worth Rs83 billion, including road projects which should mean well for cement demand in general. Cherat will also have a first movers’ advantage to gain from rising cement demand as its new plant is likely to come on line early next year.
“The oil sector, which has been the driver of the recent bull run, remained muted as Oil and Gas Development Company (OGDC -0.38%) and Pakistan Oil Fields (POL -0.86%) closed in the red on the back global oil prices taking a breather after hitting new year to date highs,” said Ghous.
Trading volumes fell to 204 million shares compared with Tuesday’s tally of 216 million.
Shares of 327 companies were traded. At the end of the day, 132 stocks closed higher, 178 declined while 17 remained unchanged. The value of shares traded during the day was Rs9 billion.
The Bank of Punjab was the volume leader with 14.4 million shares, gaining Rs0.08 to finish at Rs8.57. It was followed by Sui Southern Gas Company with 12.1 million shares, gaining Rs0.22 to close at Rs27.96 and Dewan Cement with 11.8 million shares, gaining Rs0.96 to close at Rs12.02.
Foreign institutional investors were net sellers of Rs131 million worth of shares during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, March 10th, 2016.