Market watch: Intra-day gains wiped off as index ends marginally lower
Benchmark KSE-100 Index falls 36.44 points
PHOTO: FILE
KARACHI:
Pakistan equities closed little changed after trading volatile as gains in select industrials and consumer plays were offset by losses in oils, financials, fertilisers and index names.
At close, the Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index finished with a fall of 0.07% or 36.44 points to end at 48,642.21.
Elixir Securities, in its report, stated the day kicked off on a positive note and stocks inched upwards on local value buying, but the market pared gains mid-day on profit-taking and reports of aggressive foreign selling.
Market watch:KSE-100 takes another hit as correction continues
“Oil and Gas Development Company (OGDC PA -4.9%) opened gap down and tested lower price limit intra-day on rumours of possible stake divestment of government holding by as much as 5% in the market,” said analyst Ali Raza.
“Pak Electron (PAEL +5%) hit the upper price limit and churned top volumes on the day and most since July 2016 to close at high since August of 2015 on reported institutional interest,” he commented.
“We see volatile trading to continue with benchmark KSE-100 Index trading in a range of 300-400 points, however, we see excitement pick up as we near the weekend ceremony of PSX stake-sale to the Chinese consortium.
Pakistan ‘prioritising Chinese consortium’ in PSX stake sale
“Moreover, earnings and pay-out led buying will likely counter headwinds from domestic politics,” Raza added.
Meanwhile, JS Global analyst Nabeel Haroon said the market opened on a positive note and rallied to make an intraday high of 292 points but came under selling pressure as the day progressed. Index lost around 36 points to close at 48,642 level.
“ICI (+3.35%) extended its gain on the back of the news disseminated in the market that company's board of directors have approved the agreement to form a joint venture company with Unibrands and Morinaga,” said Haroon.
“ICI's stake in the joint venture is up to 51% and the total project cost is of around Rs4.8 billion. The project is expected to come online in 2018,” he added.
Market watch: Index continues to slide, closes below 48,900
“Profit-taking was witnessed in FFBL (-2.00%) as investors came in to book their profits after the stock price of the company increased by over 5% over the course of last two trading session,” the analyst remarked.
Trading volumes fell to 330 million shares compared with Tuesday’s tally of 379 million.
Shares of 427 companies were traded. At the end of the day, 214 stocks closed higher, 192 declined while 21 remained unchanged. The value of shares traded during the day was Rs21.9 billion.
Pak Electron was the volume leader with 19.7 million shares, gaining Rs3.72 to finish at Rs78.28. It was followed by Bank of Punjab with 19.3 million shares, gaining Rs0.40 to close at Rs17.78 and Oil and Gas Development Company with 12.5 million shares, losing 8.04 to close at Rs157.81.
Foreign institutional investors were net sellers of Rs1.08 billion during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Pakistan equities closed little changed after trading volatile as gains in select industrials and consumer plays were offset by losses in oils, financials, fertilisers and index names.
At close, the Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index finished with a fall of 0.07% or 36.44 points to end at 48,642.21.
Elixir Securities, in its report, stated the day kicked off on a positive note and stocks inched upwards on local value buying, but the market pared gains mid-day on profit-taking and reports of aggressive foreign selling.
Market watch:KSE-100 takes another hit as correction continues
“Oil and Gas Development Company (OGDC PA -4.9%) opened gap down and tested lower price limit intra-day on rumours of possible stake divestment of government holding by as much as 5% in the market,” said analyst Ali Raza.
“Pak Electron (PAEL +5%) hit the upper price limit and churned top volumes on the day and most since July 2016 to close at high since August of 2015 on reported institutional interest,” he commented.
“We see volatile trading to continue with benchmark KSE-100 Index trading in a range of 300-400 points, however, we see excitement pick up as we near the weekend ceremony of PSX stake-sale to the Chinese consortium.
Pakistan ‘prioritising Chinese consortium’ in PSX stake sale
“Moreover, earnings and pay-out led buying will likely counter headwinds from domestic politics,” Raza added.
Meanwhile, JS Global analyst Nabeel Haroon said the market opened on a positive note and rallied to make an intraday high of 292 points but came under selling pressure as the day progressed. Index lost around 36 points to close at 48,642 level.
“ICI (+3.35%) extended its gain on the back of the news disseminated in the market that company's board of directors have approved the agreement to form a joint venture company with Unibrands and Morinaga,” said Haroon.
“ICI's stake in the joint venture is up to 51% and the total project cost is of around Rs4.8 billion. The project is expected to come online in 2018,” he added.
Market watch: Index continues to slide, closes below 48,900
“Profit-taking was witnessed in FFBL (-2.00%) as investors came in to book their profits after the stock price of the company increased by over 5% over the course of last two trading session,” the analyst remarked.
Trading volumes fell to 330 million shares compared with Tuesday’s tally of 379 million.
Shares of 427 companies were traded. At the end of the day, 214 stocks closed higher, 192 declined while 21 remained unchanged. The value of shares traded during the day was Rs21.9 billion.
Pak Electron was the volume leader with 19.7 million shares, gaining Rs3.72 to finish at Rs78.28. It was followed by Bank of Punjab with 19.3 million shares, gaining Rs0.40 to close at Rs17.78 and Oil and Gas Development Company with 12.5 million shares, losing 8.04 to close at Rs157.81.
Foreign institutional investors were net sellers of Rs1.08 billion during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.