Market watch: KSE-100 sees marginal correction

Benchmark KSE 100-share Index falls 0.15%


Our Correspondent March 03, 2017
PHOTO: FILE

KARACHI: Institutional profit taking was witnessed at the Pakistan Stock Exchange amid consolidation post major financials earning announcements.

The index failed to sustain its positive trajectory and succumbed to selling pressure amid growing concerns over foreign outflows.

At close on Friday, the Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index finished with a fall of 72.27 points or 0.15% to end at 49,623.81.

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Elixir Securities analyst Ali Raza said equities hit the brakes after surging 2.4% in the last two sessions.

“Market struggled to carry momentum in the morning and witnessed sharp swings and thin volumes despite reports of finalisation of a leverage product,” said Raza.

“Moreover, sentiments were dented on the morning news of Moody's highlighting credit risk post changes in goods imports regulations.

“Barring financials and select index names, wider market witnessed profit taking and closed lower with Engro Corp (Engro, -1.2%) contributing most to declines,” said Raza.

“Habib Bank (HBL, +1.7%) stood strong for the third consecutive session and contributed 63 points to the KSE-100 Index.”

Market watch: KSE-100 jumps as investor sentiment turns positive

JS Global analyst Nabeel Haroon said volatility was witnessed at the local bourse as the index continuously juggled between positive and negative zone to finally close at 49,624 level.

“SNGP (+0.52%)  managed to close in the green despite frail sentiments as the Board of Directors in its meeting on March 1, 2017 approved capital intensive project of worth Rs110.5 billion to develop 1,200 mmcfd capacity RLNG transportation pipeline from Sawan, Sindh to Qilla Sattar Shah (near Lahore, Punjab).

“Mixed sentiment was witnessed in textiles where Nishat Mills Limited (+2.84%) ended up on news that Nishat Group, which has recently entered into an agreement with Hyundai Motor Company to set up a car assembly plant in Pakistan, plans to introduce electric and hybrid passenger cars.

“Overall, the auto sector took a breather as the State Bank of Pakistan's (SBP) decision to impose 100% cash margin requirement on import of certain goods including motor vehicles (both in CBU and CKD condition) has irked auto sector stakeholders.”

FTSE includes six Pakistani companies in its index

Trading volumes fell to 392 million shares compared with Thursday’s tally of 398.5 million.

Shares of 400 companies were traded. At the end of the day, 157 stocks closed higher, 229 declined while 14 remained unchanged. The value of shares traded during the day was Rs17.2 billion.

Lotte Chemical was the volume leader with 60.1 million shares, gaining Rs0.44 to close at Rs12.26. It was followed Azgard Nine with 37.6 million shares, gaining Rs1.00 to close at Rs10.92 and Silk Bank Limited with 33.7 million shares, gaining 0.22 to close at Rs1.88.

Foreign institutional investors were net sellers of Rs404 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

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