Market watch: Index manages positive finish despite profit-taking

Benchmark KSE 100-share Index gains 17.84 points

KARACHI: A largely positive ride ended almost flat as the benchmark-100 index gained just 18 points by close with profit-taking kicking in after days of impressive gains.

At close, the Pakistan Stock Exchange’s (PSX) benchmark index registered an increase of 0.05% to end at 39,049.46.

Elixir Securities, in its report, stated that day started off on a positive note with oil stocks providing early support and pushing the benchmark to test an all-time high of 39,292 points. “Thereafter, wider market witnessed increased volatility amid selling that wiped gains. However, E&Ps stood strong and weathered the weakness on reports of institutional buying; Pakistan Petroleum (PPL PA +1.6%) and Pakistan Oilfields (POL PA +1.4%) extended gains,” said analyst Faisal Bilwani.



“Profit bookers targeted cements with Lucky Cements (LUCK PA -0.6%) and DG Khan Cement (DGKC PA +0.14%) ending lower while Maple Leaf Cement (MLCF PA +1.7%) and Pioneer Cements (PIOC PA +0.4%) managed to close the day positive albeit on trimmed gains,” he said.

“Excitement was evident in autos and pharmas with the former remaining in limelight on expectation of better sales numbers and later on reports of foreign buying,” Bilwani added.

Meanwhile, JS Global stated that the index failed to sustain that level due to profit taking.

“Automobile sector extended its previous day gain as the sector closed almost 1% higher than its previous day with major gainers of the aforementioned sector being HCAR (0.87%) and INDU (1.37%),” said Arhum Ghous.

“E&P sector continued to garner investor interest, as POL (1.40%), PPL (1.59%) and OGDC (0.41%) gained in the wake of recent discoveries and some bounce back in global oil prices,” he said.

“PNSC (0.44%) gained on the back of recent government decision to abolish customs duty, general sales tax and withholding tax on import of ships and all floating crafts till 2020.



“Moving forward we maintain our bullish stance on the market and recommend investors to see any dip as a buying opportunity,” Ghous added.

Trade volumes fell to 196 million shares compared with Tuesday’s tally of 248 million.

Shares of 366 companies were traded. At the end of the day, 153 stocks closed higher, 195 declined while 18 remained unchanged. The value of shares traded during the day was Rs15.2 billion.

K-Electric Limited was the volume leader with 16.2 million shares, losing Rs0.03 to finish at Rs8.25. It was followed by Pak Electron Limited with 13.7 million shares, gaining Rs0.92 to finish at Rs66.67 and PTCL with 11.6 million shares, gaining Rs0.35 to close at Rs16.19.

Foreign institutional investors were net buyers of Rs741 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, July 14^th, 2016.

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