Market watch: Index continues to slide, closes below 48,900

Benchmark KSE-100 Index decreases 321.96 points

Our Correspondent January 16, 2017
Benchmark KSE-100 Index decreases 321.96 points.

KARACHI: Pakistan equities closed lower as correction continued on Monday with the benchmark KSE-100 Index ending below 49,000 on selling primarily in index names.

At close, the Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index finished with a fall of 0.65% or 321.96 points to end at 48,888.54.

Elixir Securities, in its report, stated a short positive open was followed by the wider market entering in the red zone as institutional profit-taking during the day in notable names across financials, oils, cements and industrials pulled KSE-100 Index lower to test support below 49,000.

“Fertilisers, however, weathered the general downtrend and traded higher tracking positive news over the weekend that government has restored subsidy on Urea,” said analyst Faisal Bilwani.

“Regulatory changes applicable on Mutual Funds that now require minimum 5% of assets as cash and agreements with creditors to meet possible redemptions was likely one of the factors that triggered profit-taking,” Bilwani commented.

“K-Electric (KEL PA +2.3%) led volumes with over 22 million shares traded on system and another 20 million off market with stock closing green after Chinese regulators okayed the recent stake purchase in the company,” said the analyst.

JS Global analyst Nabeel Haroon said that bearish momentum prevailed as the market, after opening on a positive note, soon came under selling pressure as the index lost 322 points during the day to close at 48,888 level.

Trading volumes fell to 316 million shares compared with Friday’s tally of 514 million.

Shares of 419 companies were traded. At the end of the day, 133 stocks closed higher, 269 declined while 17 remained unchanged. The value of shares traded during the day was Rs20.2 billion.

K-Electric Limited was the volume leader with 22.7 million shares, gaining Rs0.21 to finish at Rs9.46. It was followed by Sui Southern Gas Limited with 18.1 million shares, gaining Rs0.90 to close at Rs38.64 and Engro Fertilizer with 16.9 million shares, gaining 0.80 to close at Rs70.39.

Foreign institutional investors were net sellers of Rs1.2 billion during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, January 17th, 2017.

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