Market watch: Profit-taking wipes off almost all of intra-day gain

Benchmark KSE 100-share Index gains 16.93 points

KARACHI: The benchmark-100 index continued to elude the 50,000-point level, with profit-booking again wiping off most of the intra-day gains.

Consolidation continued as the KSE-100 ending marginally positive after a sideways opening to the day.

At close on Friday, the Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index finished with a rise of 0.03% or 16.93 points to end at 49,925.08.

Elixir Securities, in its report, stated that the wider market continued to struggle for a clear direction in both morning and afternoon sessions and traded volatile in a narrow range.



“Notable index names across cements, financials, and oils such as DG Khan Cement (DGKC PA -0.2%), Habib Bank (HBL PA -0.1%), Pakistan State Oil (PSO PA -0.6%) and Oil and Gas Development Company (OGDC PA +0.2%) witnessed profit-taking at their intra-day highs and closed either in the red or with small gains,” said analyst Ali Raza.

“Meanwhile, Engro Corp (ENGRO PA +2%) closed the ninth consecutive session positive at a new all-time high and contributed most points to KSE-100 Index with excitement on a special payout being the likely trigger,” he said.



“Moreover, Mughal Iron & Steel (MUGHAL PA +5%) hit the upper price limit on announcement of getting additional gas for its captive power plant that will significantly increase its future utilisation level,” Raza remarked.

“We continue to see volatile and a range-bound market in the near-term with previous highs above 50,000 level providing strong resistance; while institutional flows, earnings and developments over court proceedings, that resume mid of next week, will keep investors interest intact in wider market,” he added.

JS Global analyst Nabeel Haroon said volatility prevailed in the market as the index traded between an intraday high of +185 points and intraday low of -62 points to finally close on a flat note (+0.03%).

“Profit taking to some extent was witnessed in the cement sector during the second half, as sector heavyweights DGKC (-0.18%), MLCF (-2.04%) and FCCL (-0.94%) lost value to close in the red,” said Haroon.



“Investor interest was witnessed in the fertiliser sector, as the sector gained to close (+1%) higher than its previous day close. FFBL (+2.71%) was one of the major gainers of the fertiliser sector,” he said.

“OGDC (+0.15%) and POL (+0.74%) in the E&P sector gained to close in the green zone, as crude oil prices surged for the second consecutive day to trade comfortably above $53.5/bbl level for most part of the day,” the analyst remarked.

“Moving forward, we recommend investors to stay cautious, and cherry pick value stocks in case of any major dip in the market,” he added.

Trading volumes fell to 354 million shares compared with Thursday’s tally of 538 million.



Shares of 422 companies were traded. At the end of the day, 168 stocks closed higher, 238 declined while 16 remained unchanged. The value of shares traded during the day was Rs17.4 billion.

Power Cement Limited was the volume leader with 26.6 million shares, gaining Rs0.86 to close at Rs18.85. It was followed by TRG Pakistan with 19.6 million shares, gaining Rs0.59 to close at Rs61.65 and Aisha Steel Mill with 18.5 million shares, gaining Rs1.19 to close at Rs28.22.

Foreign institutional investors were net buyers of Rs452 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.