Market watch: Profit-taking takes shine off index’s northward journey

Benchmark KSE-100 index falls 41.93 points.

Our Correspondent April 05, 2016
Benchmark KSE-100 index falls 41.93 points. PHOTO: AFP/FILE

KARACHI: After four successive days of closing in the black, Pakistan equities ended marginally negative in a volatile session where morning gains, which pushed the benchmark KSE-100 index to test 33,950, fizzled out on profit booking.

The volume and value of shares traded during the day inched higher as participants carried on with their momentum in the wider market.

At close on Tuesday, the Pakistan Stock Exchange’s benchmark KSE-100 index fell 0.12% or 41.93 points to end at 33,766.49.

Elixir Securities analyst Ali Raza said the market opened positive, carrying its momentum from the previous day and despite Exploration and Production (E&Ps) dragging down the index in early trade on lower global crude, gains in fertilisers and select index names led KSE-100 index to increase by near 140 points intra-day.

“However, the market succumbed to selling pressure and by day’s end almost all blue chips including cements closed lower on profit-taking.

“On a positive side, healthy activity was once again witnessed as nearly 213 million worth of shares exchanged hands on the KSE-100 index, up 18% from Monday.”

“Fauji Fertilizer Bin Qasim (FFBL PA +3.76%) maintained its northbound ride after announcing COD of its Meat Plant on Monday, while Pakistan Telecom Company (PTC PA +6.38%) closed near its upper price limit on rumours of increase in termination charges,” said Raza.

“We expect volatile trading with wider market likely finding support near current levels while retail investors will continue to hunt day trade opportunities,” he added.

Meanwhile, JS Global analyst Arhum Ghous said the cement sector led the decline as Dera Ghazi Khan Cement (DGKC -0.53%), Fauji Cement Company Limited (FCCL -1.19%) and Cherat Cement Company Limited (CHCC -1.81%) lost ground on news that the Association of Builders and Developers (ABAD) has appealed the government to take action against sky high prices or allow cement imports.

“The Oil and Gas Development Company (OGDC -1.38%) was also amongst the laggards as global oil prices continued to head southwards. Pakistan Telecommunication Company (PTC 6.38%) closed near its upper circuit on the back of news reports on the internet suggesting that the Pakistan Telecom Authority may be contemplating a floor price for telecom services provided by cellular companies,” he added.

Trade volumes rose to 327 million shares compared with Monday’s tally of 292 million.

Shares of 380 companies were traded. At the end of the day, 152 stocks closed higher, 199 declined while 29 remained unchanged. The value of shares traded during the day was Rs13.6 billion.

K-Electric Limited was the volume leader with 34.5 million shares, gaining Rs0.23 to finish at Rs7.44. It was followed by TRG Pakistan Limited with 22 million shares, gaining Rs0.61 to close at Rs31.95 and Pakistan Telecommunication Company Limited (PTCL) with 20 million shares, gaining Rs0.98 to close at Rs16.34.

Foreign institutional investors were net buyers of Rs506 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, April 6th,  2016.

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