Market watch: Stocks bleed once again as bears take over

Benchmark KSE-100 index falls 247.42 points

KARACHI: Bears came to the fore once again as the benchmark-100 index fell for a second straight day with investors staying on the sidelines amid low volumes once again.

Oil, financial and fertiliser sectors took a battering as lack of triggers and direction meant investors were happy to trim their positions.

At close on Thursday, the Pakistan Stock Exchange’s (PSX) KSE-100 index lost 0.75% or 247.42 points to end at 32,710.56.



Elixir Securities analyst Ali Raza said Pakistan equities fell further to close negative as benchmark KSE100 index broke below its short-term support of 32,800. “Market again witnessed a dull spell of volumes as institutions largely stayed on sidelines awaiting clarity on foreign flows,” said Raza.

“Stocks opened positive with index heavy oils gaining in early trade on rise in international crude, however, wider market struggled to find a clear direction and soon drifted into red zone.

“Fertiliser stocks did early damage on the news of government’s concern over inflated urea prices and cartelisation by local players, and consequently all fertiliser plays ended lower with Fauji Fertilizer (FFC, -3.34%) contributing most to today’s losses.

“Aside from fertiliser stocks, most index names witnessed limited interest with financials also struggling to find a clear direction,” said Raza.

“Overall, volumes remain focused in small and mid-caps as day jobbers hunted opportunities for making quick bucks.”

JS Global analyst Ahmed Saeed Khan said that market opened on a positive note but failed to sustain at higher levels, closing down 247.42 points after making an intraday high of +122.70 points.

“Negativity could be attributed to profit taking. Major laggards were Shell (-3.28%), Attock Petroleum Limited (-1.93%) and HBL (-1.65%).”

Khan also asserted that the fertiliser sector remained under pressure on back of news that the National Assembly body has suggested import of more urea in an attempt to tame local prices.

Trading volumes fell to 135 million shares compared with Wednesday’s tally of 204 million.



Shares of 340 companies were traded. At the end of the day, 114 stocks closed higher, 212 declined while 14 remained unchanged. The value of shares traded during the day was Rs6.4 billion.

Dewan Cement was the volume leader with 14.4 million shares, gaining Rs0.12 to finish at Rs12.14. It was followed by TRG Pakistan Limited with 7.5 million shares, losing Rs0.70 to close at Rs27.36 and Pakistan Telecommunication Limited with 7.1 million shares, gaining Rs0.07 to close at Rs14.82.

Foreign institutional investors were net buyers of Rs15.7 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 11^th, 2016.

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