Market watch: Index bleeds as profit-bookers eye opportunity

Benchmark KSE 100-share Index loses 353.36 points

Our Correspondent September 23, 2016
Benchmark KSE 100-share Index loses 353.36 points

KARACHI: In stark contrast to Thurs­day’s proceedings, the bench­mark-100 index skidded lower to end below the 40,000-point level as profit-bookers eyed the opportunity at the end of the week.

Small and mid-caps continued to dominate volumes with stock-specific news providing the only bullish momentum to an otherwise bleeding day for equities.

Rising tension between Pakistan and India did little to cheer investors who opted to stay on the sidelines ahead of the monetary policy statement due on Saturday. The central bank is expected to maintain the status quo in the announcement.

At close on Friday, the Pakistan Stock Exchange’s benchmark KSE-100 index finished 0.88% or 353.36 points lower to end at 39,781.95.

Elixir Securities, in its report, stated activity was on the lower side as most participants remained on the side-lines.

“Financials dented the benchmark index with Habib Bank (HBL -1.8%) and United Bank (UBL -1.3%) both closing in red, however, MCB Bank (MCB +1.1%) sailed against the wind on reports of foreign buying,” said analyst Ali Raza.

“Moreover, reported foreign selling in Engro Corp (ENGRO -3.4%) continued unabated pushing stock to trade lowest in last six months.

“Cements traded mixed with Lucky Cements (LUCK +2.1%) contributing most to the day’s gain, while retail-favourite Dewan Cement (DCL +5%) hit the upper price limit after the company notified exchange of receiving an acquisition interest from a Chinese company,” Raza added.

Meanwhile, JS Global analyst Ahmed Saeed Khan said that PTC (-2.22%) remained under pressure after the company refuted rumours that any discussion regarding sale of Etisalat’s stake has taken place.

“The automobile sector remained under pressure on the back of appreciating Yen, where top index movers of the sector were INDU (-1.32%) and HCAR (-1.64%),” he remarked.

“News that ECC approval is being sought by the Ministry of Industries and Production to cut the price of imported urea from Rs1,310/bag further exacerbated the misery of local producers as a surplus of the commodity looms.

“Biggest laggards of the aforementioned sector were ENGRO (-3.37%) and FFC (-2.65%).

“As the futures rollover week starts next week, we expect volatility will persist and advise accumulation on dips in blue chip stocks,” Khan added.

Trade volumes fell to 506 million shares compared with Thursday’s tally of 660 million.

Shares of 425 companies were traded. At the end of the day, 137 stocks closed higher, 275 declined while 13 remained unchanged. The value of shares traded during the day was Rs6.8 billion.

WorldCall Telecom was the volume leader with 44.9 million shares, gaining Rs0.06 to finish at Rs2.85. It was followed by Pace (Pak) with 36 million shares, gaining Rs0.17 to close at Rs11.14 and Media Times Limited with 34.1 million shares, gaining Rs0.31 to close at Rs4.60.

Foreign institutional investors were net sellers of Rs74 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, September 24th, 2016.

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