Market watch: Index slides amid selling pressure

Benchmark KSE 100-share Index falls 212.15 points

KARACHI: Stocks endured an erratic session on Wednesday with the benchmark KSE-100 Index losing close to 250 points in the final hour as profit-taking wiped off all intra-day gains.

A positive open, which saw KSE-100 surpass 50,000 with ease and touch a record high of 50,267 points, was followed by investors resorting to booking profits.

KSE-100 finishes at record high, closes in on 50,000

At close, the Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index ended with a fall of 0.42% or 212.15 points to end at 49,756.77.

JS Global analyst Nabeel Haroon said volatility prevailed in the market as the index traded between an intraday high of +298 points and intraday low of -247 points to finally close 212 points lower.

“Profit taking was witnessed in the fertiliser sector as it lost value to close (-1.1%) lower than its previous day close,” said Haroon.

“Fauji Fertilizer Company Limited (-1.05%) and Fatima Fertilizer Company Limited (-3.86%) were among the major losers of the aforementioned sector.

“International Industries Limited gained to close on its upper circuit as the steel manufacturer declared its result for 1HFY17. In its result, the company posted earnings per share of Rs9.98 along an interim of Rs2.50/share,” added Haroon.

According to Topline Securities, the KSE-100 index started the day positively to gain 300 points during the first half of the trading session. However, pressure was witnessed in later part of the day due to future roll-over which led the market to close in red zone.

“Profit taking was witnessed in cement sector, as DG Khan Cement (DGKC), Maple Leaf Cement (MLCF) and Pioneer Cement (PIOC) declined between 0.8-1.5%.”

Market watch:KSE-100 takes another hit as correction continues

Trading volumes fell to 459 million shares compared with Tuesday’s tally of 509 million.

Shares of 425 companies were traded. At the end of the day, 185 stocks closed higher, 230 declined while 10 remained unchanged. The value of shares traded during the day was Rs25.4 billion.

Japan Power was the volume leader with 48.1 million shares, gaining Rs0.92 to finish at Rs8.01. It was followed by Dost Steel Limited with 34 million shares, gaining Rs0.49 to close at Rs14.04 and TRG Pakistan with 27.9 million shares, gaining Rs2.48 to close at Rs53.12.

Foreign institutional investors were net sellers of Rs398 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.