KARACHI: Pakistan equities skidded lower on Wednesday with the benchmark KSE 100-share index settling near the intra-day low on profit-booking and thin volumes.
At close, the Pakistan Stock Exchange’s benchmark index recorded a fall of 0.69% or 266.05 points to end at 38,149.26.
Elixir Securities, in its report, stated that after a positive open, led by modest gains in select stocks, the wider market succumbed to mild selling as most participants preferred to remain on the sidelines amid confusion and anxiety over Brexit that was keeping investors across the globe on a lookout.
“Stocks that provided early support namely Pakistan Petroleum (-0.3%) and Pakistan Oilfields (-0.2%) in the E&P sector, United Bank Limited (-1.3%) and Habib Bank (-1%) among financials, Lucky Cement (-1%) and DG Khan Cement (-0.5%) in cement stocks, erased early gains to close in the red on institutional and reported prop-book selling,” said analyst Faisal Bilwani.
“Engro Fertilizers (-1.2%) had another negative close and traded at the lowest level since January 2015, with nearly 3.9 million shares traded in the system while 1.9 million were traded off-market as part of employees stock option transfer,” he added.
Meanwhile, JS Global analyst Arhum Ghous was of the view that the market opened on a positive note and hit an intraday high of 205 points but came under selling pressure during late trading hours and the index fell to close at 38,149 points.
“Selling during late hours can be attributed to investors squaring their positions in June futures contracts, as it is a futures rollover week,” said Ghous.
“Stocks proposed to be part of the MSCI Emerging Market Index continued their downward trajectory, as HBL, MCB (-2.25%) and Lucky Cement lost value to close in the red zone.”
Pressure was seen in the E&P sector ahead of the US weekly stockpile data. Oil and Gas Development Company (-1.01%) was the major laggard of the sector.
“Moving forward we expect the market to remain under pressure due to the futures rollover week and recommend investors to stay cautious,” he added.
Trade volumes fell to 124 million shares compared with Tuesday’s tally of 154 million.
Shares of 340 companies were traded. At the end of the day, 91 stocks closed higher, 225 declined while 24 remained unchanged. The value of shares traded during the day was Rs7.5 billion.
K-Electric Limited was the volume leader with 16 million shares, losing Rs0.05 to finish at Rs7.91. It was followed by Dewan Cement Limited with 12.8 million shares, losing Rs0.53 to close at Rs13.42 and Dewan Motors with 7.6 million shares, losing Rs0.53 to close at Rs14.63.
Foreign institutional investors were net sellers of Rs280 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, June 23rd, 2016.
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