PHOTO: EXPRESS
KARACHI: Pakistan equities snapped a seven-day positive streak to close lower after a brief pit-stop above 49,000 where profit taking in index names kicked in.
At close on Wednesday, the Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index recorded a fall of 0.25% or 122.56 points to end at 48,704.99.
Elixir Securities, in its report, stated sharp swings tested nerves with cements, oils, financials and fertilisers all seeing volatile trading as institutional flows along with retail churning kept interest in wider market alive.
“Court hearing on the First family’s case kept investors attention diverted for most of the first half as flows continue to guide direction in absence of any major news or immediate trigger,” said analyst Faisal Bilwani.
“Small caps led the volumes while sideboards stepped up to keep downside limited as most index names ended the day lower on profit booking,” Bilwani remarked.
“We expect volatile trading and wider market likely taking a breather despite strong domestic liquidity. Daily court hearings on Panama allegations will keep politics in limelight and, until a major development, proceedings are expected to remain no more than a distraction,” he added.
Meanwhile, JS Global analyst Nabeel Haroon was of the view that volatility prevailed in the market as the index traded between an intraday high of +241 points and intraday low of -192 points to finally close at 48,705 level.
“Profit taking was witnessed in the fertiliser sector as the sector closed (-0.4%) lower than its previous day close. FATIMA (-0.97%) and FFBL (-1.01%) were top losers of the aforementioned sector,” said Haroon.
“Pressure was witnessed in the cement sector as investors await cement dispatch numbers due to be released later this week. CHCC (-2.25%) and FCCL (-1.27%) were major losers from the aforementioned sector.
“E&P sector lost value to close marginally lower as crude oil prices traded below $53/bbl level during the course of the day. OGDC (-1.04%) and POL (-0.36%) in the E&P sector lost value to close in the red zone,” the analyst commented.
“Moving forward, we recommend investors to book profits on strength and wait for correction in the market to accumulate new positions,” he added.
Trading volumes fell to 403 million shares compared with Tuesday’s tally of 501 million.
Shares of 423 companies were traded. At the end of the day, 176 stocks closed higher, 227 declined while 20 remained unchanged. The value of shares traded during the day was Rs21.7 billion.
Dost Steels Limited was the volume leader with 32.9 million shares, losing Rs0.36 to finish at Rs12.93. It was followed by Aisha Steel Mill with 23.9 million shares, gaining Rs0.46 to close at Rs17.04 and Fauji Cement with 15.3 million shares, losing Rs0.61 to close at Rs47.58.
Foreign institutional investors were net buyers of Rs631 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, January 5th, 2017.
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