Market watch: KSE-100 ends week and month on negative note

Benchmark index falls 180.80 points to end at 49,300.90

KARACHI: The stock market suffered a further decline on Friday as investors resorted to profit-booking ahead of weekend and weakening global crude prices brought down shares of oil companies.

At close, the Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index recorded a fall of 180.80 points, or 0.37%, to end at 49,300.90.



Elixir Securities analyst Ali Raza said Pakistan equities closed last working day of the week and the month on a negative note with the benchmark index dropping further on profit-taking. A day earlier, the market had dropped by 346 points.

“After a brief positive open, stocks traded volatile and entered the red zone as investors likely booked profits ahead of the long weekend amid no major news flow or earnings announcement,” said Raza.

“Oil stocks were the major laggards as depressed crude prices kept all names under pressure. Pakistan Petroleum (-3.6%), Oil and Gas Development Company (-2.5%) and Pakistan State Oil (-2.1%) jointly dented the KSE-100 index by over 100 points.”

Raza said index-heavy Habib Bank (+1.6%), on the other hand, emerged as star performer followed closely by retail-favourite Pak Elektron (+3.1%). Both stocks closed higher on reported institutional interest.



JS Global analyst Nabeel Haroon said volatility prevailed in the market during the first half of trading session as index continuously moved between positive and negative zones.

“However, pressure was witnessed during the second half as the index lost around 181 points to close at 49,301 (down 0.4%),” said Haroon.

“CSAP (Crescent Steel and Allied Products) lost value to close at its lower circuit as the company declared results for 9MFY17, in which it posted earnings per share (EPS) of Rs11.28 (-8.35% year-on-year).”

The result was accompanied by Rs1.5 per share cash payout, taking the full-year payout to Rs3 per share.

“Hascol Petroleum (+2.59%) in the oil marketing sector garnered investor interest as the company posted EPS of Rs3.12 for 1Q2017, up 86% year-on-year,” he said.

Haroon said the increase in earnings could be attributed to the company’s continuous growth in white oil segment (motor spirit, high-speed diesel, etc.)

Nishat Chunian (-3.19%) in the textile sector failed to create excitement, though the company posted EPS of Rs5.83 (83% higher year-on-year).

“Since its subsidiary, Nishat Chunian Power, announced no dividend for the second consecutive quarter in its 9MFY17 results, it raised concerns with respect to 4QFY17 dividend income of the textile company.”



Overall, trading volumes fell to 289 million shares compared with Thursday's tally of 398 million.

Shares of 386 companies were traded. At the end of the day, 148 stocks closed higher and 223 declined while 15 remained unchanged. The value of shares traded during the day was Rs16.1 billion.

Aisha Steel Mills was the volume leader with 29 million shares, losing Rs0.71 to close at Rs25.37. It was followed by Engro Polymer with 21.7 million shares, losing Rs0.16 to close at Rs28.84 and TRG Pakistan with 15.6 million shares, losing Rs0.96 to close at Rs56.81.

Foreign institutional investors were net sellers of Rs377 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.