Market watch: KSE-100 drops slightly as it struggles for direction

Benchmark index loses 45.74 points to close at 48,971.05

KARACHI: The stock market fell on Friday below the 49,000-point mark with a small decline in the benchmark index, though overall trading volumes rose.

At close, the Pakistan Stock Exchange's benchmark KSE 100-share Index recorded a fall of 45.74 points or 0.09% at 48,971.05.

According to Elixir Securities' analyst Ali Raza, the market continued to struggle for direction throughout the day and showed dreary activity where turnover on the KSE-100 index came in at only $66 million, down 22% versus the current month's average.

"Cement and financial stocks largely experienced profit-taking and ended lower, barring Habib Bank (+0.6%) that ended in the green after seeing on-system crosses reportedly by foreign institutions," he said.



K-Electric (+3.2%) saw a bounce back and dominated the volumes chart as investors bet on a possible positive outcome from meetings with the regulator that could address concerns over the recent tariff reduction and threat to the M&A deal with Shanghai Electric.

"Expect range-bound trading to continue into next week with market continuing to experience dull volumes in the absence of major triggers amid looming uncertainty over the domestic political front and silence over progress on the leverage product," he said.

Moreover, he added, the monetary policy decision over the weekend would likely be a non-event as most expected no change in the discount rate.

According to JS Research, activity on the benchmark index remained lacklustre as it traded between an intraday high of +122 points and low of -89 points because of political jitters.



"Fauji Fertilizer Bin Qasim (FFBL, +1.18%) increased in value post release of material information that FFBL Power Company, a subsidiary of FFBL, is expected to commence commercial operations by end-April," said analyst Arhum Ghous.

Overall, a mixed rally was witnessed in the banking sector where some of the big banks such as HBL (+0.63%) and NBP (+0.16%) closed in the green zone whereas MCB Bank (-1.44%) and UBL (-0.35%) posted declines.

"We expect overall volatility to persist in the absence of major triggers and the forthcoming Panama Papers case verdict. We recommend investors to stay cautious," he added.



Overall, trading volumes rose to 353 million shares compared with Wednesday's tally of 317 million.

Shares of 394 companies were traded. At the end of the day, 204 stocks closed higher, 172 declined while 18 remained unchanged. The value of shares traded during the day was Rs11.4 billion.

K-Electric was the volume leader with 42.4 million shares, gaining Rs0.29 to close at Rs8.68. It was followed by The Bank of Punjab with 35.7 million shares, gaining Rs0.98 to close at Rs18.25 and Aisha Steel Mills with 28.8 million shares, gaining Rs1.28 to close at Rs27.02.

Foreign institutional investors were net buyers of Rs74.8 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.