Market watch: Index witnesses dull session, but closes positive

Benchmark KSE 100-share Index gains 74.21 points

KARACHI: Pakistan equities closed marginally positive in a lacklustre trading session where the benchmark KSE-100 Index traded range-bound in a narrow band of over 200 points.

At close, the Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index finished with a rise of 0.15% or 74.21 points to end at 49,630.04.

According to Elixir Securities, the wider market recorded a dull spell as most index names saw little interest on selective institutional participation, while retail investors also mostly stayed on the side-lines with ongoing investigations by Security and Exchange Commission of Pakistan (SECP) against non-compliant brokers becoming a cause for concern.



“Volumes and turnover on KSE-100 Index witnessed a significant decline as they both were lowest since last week of December,” said analyst Ali Raza.

“Major sectors including cements and financials closed mixed while oils ended mostly in red on profit-taking,” he commented.

“Meanwhile, Pakistan State Oil (PSO PA -2.9%) took a beating and closed lower as the company omitted paying any dividends despite announcing higher than consensus earnings,” Raza added.

“We see a choppy market ahead with benchmark KSE-100 finding resistance at 50,000 and likely consolidating near current levels.

“Ongoing brokers' investigations are likely to keep participants on the lookout and they may overshadow upcoming earnings announcement in the near-term,” he added.



Meanwhile, JS Global analyst Nabeel Haroon said the market hit an intraday high of +184 points but failed to sustain high levels, as the E&P sector lost most of its gains.

“Banking sector led the gains, as the index heavy weights HBL (+1.25%) and UBL (+0.95%) gained to close in the green zone,” said Haroon.

“TPL (+6.23%) gained on the back of news that it has entered into a joint venture agreement with SIM4 (Teamup); through this joint venture company intends to offer mobile communication services to resident and non-resident Pakistanis,” he added.

“PSO closed 2.89% down, as the OMC declared its result for 1HFY17. In its result announcement, company posted EPS of Rs36.86/share for 1HFY17 with no cash payout (contrary to market expectations of around Rs6/share).



“Moving forward, we recommend investors to see any major dip in the market as an opportunity to buy,” the analyst remarked.

Trading volumes fell to 281 million shares compared with Friday’s tally of 338 million.

Shares of 422 companies were traded. At the end of the day, 189 stocks closed higher, 205 declined while 28 remained unchanged. The value of shares traded during the day was Rs13 billion.

Lotte Chemical was the volume leader with 42.7 million shares, gaining Rs1.00 to finish at Rs10.45. It was followed by TRG Pakistan Limited with 28.3 million shares, gaining Rs2.59 to close at Rs61.21 and K-Electric Limited with 17.5 million shares, losing Rs0.06 to close at Rs10.46.

Foreign institutional investors were net buyers of Rs141 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.