Market watch: Profit-taking kicks in to push stocks lower
Benchmark KSE 100-share Index loses 132.9 points.
Benchmark KSE 100-share Index loses 132.9 points
KARACHI:
Pakistan equities closed lower, snapping a 3-day positive run that added over 5% to the benchmark KSE-100 index, as profit-booking kicked in.
At close on Friday, the Pakistan Stock Exchange’s benchmark KSE 100-share Index recorded a fall of 0.32% or 132.90 points to end the day at 41,841.56.
Elixir Securities, in its report, stated that after a sideways open the wider market skidded lower with exploration and production (E&Ps) pulling the benchmark index in negative as investors tracked declines in global crude.
“Later on, wider market witnessed steady recovery driven largely by retail interest in second- and third-tier names that helped KSE-100 Index make a fresh all-time high in the morning session,” said analyst Ali Raza.
“However, from the outset of the post-morning session, equities lost ground as investors opted to book profits at highs ahead of the weekend. Index heavy Habib Bank (HBL -2.8%) that had gained over 11% in the past three sessions witnessed correction and contributed most to day’s losses.
“On the flip side, Fauji Cement (FCCL +4.4%) and Ghandhara Nissan (GHNL +5%) stood out as star performers with the former coming in the limelight over clarity over its damaged line, while the latter gained traction over announcement of a joint venture with French car manufacturer, Renault,” said Raza.
“We see investors to track developments on the political front and trade accordingly as a key court hearing of PM Nawaz Sharif’s family is lined up for Monday,” he added.
Meanwhile, JS Global analyst Arhum Ghous was of the view that volatility prevailed as the index juggled between +147 and -175 points.
“The market witnessed profit taking on the back of uncertainty in the global political situation ahead of an expected close US election, said Ghous.
“E&P sector remained under pressure on the back of decline in crude oil prices. Crude oil prices plummeted to a five-week low below $45 in the international market.
“POL (-0.88%) and OGDC (-0.17%) were the major laggard of the aforementioned sector.
“Moreover, profit taking was witnessed in the cement sector due to surge in international coal prices. KOHC (-1.03%) and PIOC (-0.61%) were the major laggard of the aforementioned sector,” the analyst remarked.
“We advise overall caution as the US elections will be a key theme to follow next week and will keep investors nervous.
“Defensive plays with high div yields should be the natural choice while the banking sector should be accumulated on weakness as interest rates can potentially take a U-turn as inflation picks up,” he added.
Trading volumes fell to 452 million shares compared with Thursday’s tally of 529 million.
Shares of 430 companies were traded. At the end of the day, 173 stocks closed higher, 238 declined while 19 remained unchanged. The value of shares traded during the day was Rs15.3 billion.
The Bank of Punjab was the volume leader with 79.2 million shares, losing Rs0.15 to finish at Rs18.33. It was followed by Sui Southern Gas Company with 21.1 million shares, losing Rs0.09 to close at Rs44.61 and Dewan Cement with 20.8 million shares, losing Rs0.58 to close at Rs31.60.
Foreign institutional investors were net buyers of Rs208 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, November 5th, 2016.
Pakistan equities closed lower, snapping a 3-day positive run that added over 5% to the benchmark KSE-100 index, as profit-booking kicked in.
At close on Friday, the Pakistan Stock Exchange’s benchmark KSE 100-share Index recorded a fall of 0.32% or 132.90 points to end the day at 41,841.56.
Elixir Securities, in its report, stated that after a sideways open the wider market skidded lower with exploration and production (E&Ps) pulling the benchmark index in negative as investors tracked declines in global crude.
“Later on, wider market witnessed steady recovery driven largely by retail interest in second- and third-tier names that helped KSE-100 Index make a fresh all-time high in the morning session,” said analyst Ali Raza.
“However, from the outset of the post-morning session, equities lost ground as investors opted to book profits at highs ahead of the weekend. Index heavy Habib Bank (HBL -2.8%) that had gained over 11% in the past three sessions witnessed correction and contributed most to day’s losses.
“On the flip side, Fauji Cement (FCCL +4.4%) and Ghandhara Nissan (GHNL +5%) stood out as star performers with the former coming in the limelight over clarity over its damaged line, while the latter gained traction over announcement of a joint venture with French car manufacturer, Renault,” said Raza.
“We see investors to track developments on the political front and trade accordingly as a key court hearing of PM Nawaz Sharif’s family is lined up for Monday,” he added.
Meanwhile, JS Global analyst Arhum Ghous was of the view that volatility prevailed as the index juggled between +147 and -175 points.
“The market witnessed profit taking on the back of uncertainty in the global political situation ahead of an expected close US election, said Ghous.
“E&P sector remained under pressure on the back of decline in crude oil prices. Crude oil prices plummeted to a five-week low below $45 in the international market.
“POL (-0.88%) and OGDC (-0.17%) were the major laggard of the aforementioned sector.
“Moreover, profit taking was witnessed in the cement sector due to surge in international coal prices. KOHC (-1.03%) and PIOC (-0.61%) were the major laggard of the aforementioned sector,” the analyst remarked.
“We advise overall caution as the US elections will be a key theme to follow next week and will keep investors nervous.
“Defensive plays with high div yields should be the natural choice while the banking sector should be accumulated on weakness as interest rates can potentially take a U-turn as inflation picks up,” he added.
Trading volumes fell to 452 million shares compared with Thursday’s tally of 529 million.
Shares of 430 companies were traded. At the end of the day, 173 stocks closed higher, 238 declined while 19 remained unchanged. The value of shares traded during the day was Rs15.3 billion.
The Bank of Punjab was the volume leader with 79.2 million shares, losing Rs0.15 to finish at Rs18.33. It was followed by Sui Southern Gas Company with 21.1 million shares, losing Rs0.09 to close at Rs44.61 and Dewan Cement with 20.8 million shares, losing Rs0.58 to close at Rs31.60.
Foreign institutional investors were net buyers of Rs208 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, November 5th, 2016.