Market watch: Oil leads, but index ends almost flat

Benchmark KSE-100 index inches up 11.75 points.

Our Correspondent May 17, 2016
Foreign institutional investors were net sellers of Rs346 million during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited. PHOTO: REUTERS


The benchmark-100 index closed little unchanged amid volatile trading as profit-taking and consolidation continued at the bourse.

At close on Tuesday, the Pakistan Stock Exchange (PSX) benchmark KSE-100 index edged up 0.03% or 11.75 points to end at 36,137.12.

Elixir Securities, in its report, said the trading pattern mirrored previous sessions in early trade with a positive open with index heavy Exploration and Production (E&P) opening gap up and leading early gains as investors tracked overnight rise in global crude.

“Financials, cements and select fertilisers also supported the upward drive and benchmark index steadily gained to test 36,390 intra-day, however, selling in late hours, primarily on institutional-led profit taking, wiped gains as investors continued to trade cautiously amid political noise and ahead of budget.”

“Pakistan International Bulk Terminal (PIBTL PA +5%) maintained its winning streak and closed at its upper price limit, churning record volumes in the process and trading near 40% of total KSE-100 index traded volume.

“Hub Power Company (HUBC PA -2.1%) dented index most with steady declines as investors booked gains and are likely re-aligning holdings as Kot Addu Power (KAPCO PA +1%) attracts attention on bets over possible tariff extension and coal conversion,” added the report.  “We expect stocks to trade volatile and likely test 36,000 support with investors tracking flows and trading selectively till clarity on political front emerges. Budget related news flow will likely keep upside in check, commented Elixir Securities analyst Faisal Bilwani.

Meanwhile, JS Global analyst Ahmed Saeed Khan said volatility prevailed in Tuesday’s session as the index initially rallied around 265 points but succumbed to pressure amid increased political noise.

“Rally in E&P sector was witnessed amid increased global crude oil prices due to disruption of supply from Canada and Nigeria.

“Top performers of the aforementioned sector were Oil and Gas Development Company (OGDC +1.51%) and Pakistan Petroleum Limited (PPL +1.65%).”

“FEROZ (+5.0%) hit its upper limit with in the first trading hour on back of news that the firm got approval from Drug Regulation Authority Pakistan (DRAP) to produce Hepatitis C drugs at five times lower price.

“Cement sector came under pressure on the back of furnace oil prices rising by 8.2%.

“Marginal correction continued in scrips that are expected to be included in MSCI emerging market index as UBL (-0.04%), HUBC (-2.14%) and LUCK (-1.19%) closed in the red zone.”

“Moving forward we remain bullish on the market and expect a rally from these levels once the political noise settles down,” added Khan.

Trade volumes rose to 274 million shares compared with Monday’s tally of 220 million.

Shares of 366 companies were traded. At the end of the day, 138 stocks closed higher, 206 declined while 22 remained unchanged. The value of shares traded during the day was Rs11.4 billion.

Pakistan International Bulk Terminal was the volume leader with 59.3 million shares, gaining Rs1.40 to finish at Rs32.17. It was followed by TRG Pakistan Limited with 21.8 million shares, losing Rs1.20 to close at Rs35.91 and Dewan Motors with 10.4 million shares, gaining Rs0.46 to close at Rs16.72.

Foreign institutional investors were net sellers of Rs346 million during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, May 18th, 2016.

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