Market watch: Stocks bleed as interest remains subdued

Benchmark KSE-100 index falls 126.48 points

KARACHI: A lacklustre trading session amid subdued regional markets meant the benchmark-100 index ended negative as investors remained on the sidelines.

Lower prices of crude oil and the auto policy’s favour towards new entrants meant investors opted to trim their positions in the two sectors with most notable names ending in the red.

At close on Thursday, the Pakistan Stock Exchange’s benchmark KSE-100 index fell 0.38% or 126.48 points to end at 32,801.88.



Elixir Securities, in its report, said equities closed red after listless trading.

“Turnover on Thursday was the lowest in the last 10 months as only $32 million worth of shares exchanged hands on the KSE-100 index,” stated the report. “Stocks traded in a narrow range as investors tracked subdued regional markets while roll over week and lack of clarity on foreign flows also contributed to a lacklustre session.

“Oil and Gas Development Company (OGDC -2%) dented the benchmark-100 index the most on lower global crude, followed by Habib Bank (HBL -0.81%) and MCB Bank (-0.95%).

“We expect the recent dull performance to continue with benchmark index trading in a range near current levels.”

Meanwhile, JS Global analyst Arhum Ghous said sentiments at the bourse remained negative.



“Weak sentiments in the market can be attributed to correction in crude oil prices, to downtrend in the global equity markets and to Thursday being the second last trading session for March futures contracts.

“OGDC (-2.0%), Pakistan Oilfields (POL -1.58%) and Pakistan Petroleum (PPL -1.24%) in the exploration and production (E&P) sector remained under pressure on the back of decline in crude oil prices, as they fell to trade at around $39 per barrel.

“Honda Atlas Cars (HCAR -0.71%), Indus Motors (INDU -1.72%) and Pak Suzuki (PSMC -1.64%) in the auto sector extended their losses on the back of auto policy that was announced on Friday.

“Investor interest was seen in both the gas utilities as Sui North (SNGPL +2.57%) and Sui South (SSGC +1.47%) both gained to close in the green zone.

“For Friday’s session, we expect the market to remain under pressure as it will be the last trading session for March futures contract.”

Trade volumes fell to 86 million shares compared with Wednesday’s tally of 133 million shares.

Shares of 323 companies were traded on Thursday. At the end of the day, 121 stocks closed higher, 179 declined while 23 remained unchanged. The value of shares traded during the day was Rs4.6 billion.

Dewan Motors was the volume leader with 7.8 million shares, losing Rs0.55 to finish at Rs9.89. It was followed by TRG Pakistan with 7.3 million shares, gaining Rs0.68 to close at Rs27.35 and Fatima Fertilizer with 4.8 million shares, gaining Rs0.05 to close at Rs31.89.

Foreign institutional investors were net sellers of Rs91 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, March 25^th, 2016.

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