Market watch: Index touches 50,000 but ends lower after volatile trading

Benchmark KSE 100-share Index rises 92.74 points

KARACHI: Pakistan equities endured a volatile ride on Tuesday, with the benchmark KSE-100 Index ending slightly higher but still below the 50,000-point level.

The index started on a positive note, surpassing the coveted 50,000-point barrier with ease before taking a nosedive of over 400 points. A gradual run then saw the index gain steadily before profit-booking kicked in to halt the ride.

At close, the Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index ended with a rise of 0.19% or 92.74 points to end at 49,968.92.



According to Elixir Securities, the market opened higher and KSE-100 Index did cross the 50,000 level intra-day in early trade, however, selling pressure in index heavy names kept the upside in check as savvy investors grabbed opportunity to book profits in recent gainers.

“Pakistan State Oil (PSO PA +5%) surprised many with late aggressive buying pushing stock to hit the upper price limit on reported local interest, while Engro Foods (EFOODS PA +3.1%) traded highest volumes since September 2016 and closed at new record level after news of provincial regulatory body imposing fines that most likely ended the concerns of a much worst outcome,” said analyst Faisal Bilwani.

“Meanwhile, International Steels (ISL PA -5%) closed at lower price limit and ICI Pakistan traded volatile and closed flat, as former announced sub-par earnings while latter declared lower than expected pay-out,” said Bilwani.



“[We] see strong resistance and possibly a choppy market in near-term with benchmark KSE-100 Index trading in range of 300-400 points,” he added.

JS Global analyst Nabeel Haroon said volatility prevailed in the market as the index, in spite of repeated attempts, failed to sustain its level above 50,000 and closed at 49,969.

“Investor interest was seen in the cement sector as the sector gained to close (0.34%) higher than its previous day close. DGKC (+2.11%) and FCCL (+1.44%) were among the major gainers of the aforementioned sector,” said Haoron.

“Fertiliser sector extended its previous day gain on the back of the news that ECC has authorised continuation of fertiliser subsidy scheme for FY17 and has also permitted export of 0.3 million tons of urea fertiliser till April 28, 2017 without the subsidy that is being extended for local urea sales. FFBL (+0.40%) was among the top performers of the aforementioned sector,” he commented.



“ISL lost value to close on its lower circuit as the steel manufacturer announced its result for 1HFY17. In its financial result the company posted EPS of Rs2.67/share and declared no divided for 1HFY17.

“Profit taking was witnessed in HCAR (-3.49%) as sceptical investors came in to book their profits a day before the automobile assembler's 3Q financial result announcement.

“Moving forward, we recommend investors to book profits on strength at current levels,” he added.

Trading volumes fell to 509 million shares compared with Monday’s tally of 600 million.

Shares of 432 companies were traded. At the end of the day, 208 stocks closed higher, 206 declined while 18 remained unchanged. The value of shares traded during the day was Rs28.5 billion.



K-Electric Limited was the volume leader with 71.4 million shares, losing Rs0.17 to finish at Rs9.99. It was followed by Aisah Steel Mill with 48.8 million shares, gaining Rs0.33 to close at Rs22.01 and Japan Power with 18.9 million shares, gaining Rs0.06 to close at Rs7.09.

Foreign institutional investors were net sellers of Rs494 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.