Market watch: KSE-100 continues to fall as investors book profit

PSX's benchmark index records a decline of 301.78 points to end at 51,511.41

KARACHI: After snapping its winning streak on Tuesday, the KSE 100-share Index fell further in the wake of intense profit-taking.

At close on Wednesday, the Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index recorded a fall of 301.78 points or 0.58% at 51,511.41.

According to JS Research, while the index started on a positive note, it soon lost ground on profit-booking.

"The banking sector led the decline as index heavyweights MCB Bank (-3.47%) and Habib Bank (-0.90%) both cumulatively contributed -104 points to the index," said analyst Arhum Ghous.



"National Refinery, in the refinery sector, lost value to close at Rs821.66 (-1.09%). Al-Ghazi Tractors, in the auto sector, gained to close (+4.54%) higher. The company has strengthened its business ties with CNH Industrial Italia for the next 10 years and will assemble and sell New Holland CNHI tractors in Pakistan."

The exploration and production sector declined and it could be attributed to falling crude oil prices. Pakistan Oilfields (-0.88%) and Oil and Gas Development Company (-0.02%) were major laggards of the sector.

"Moving forward, we expect bullish momentum in the market and recommend investors to accumulate MSCI EM stocks on dips," he added.

Meanwhile, according to a Topline Securities' report, the KSE-100 index extended losses as investors continued to book gains in heavyweight stocks, which had rallied considerably in the run-up to the MSCI review.



"Top drags on the index were MCB Bank, Habib Bank, Hub Power Company (-1.2%), Adamjee Insurance (-4.6%) and United Bank (-0.6%), while International Steels (+2.1%), Dawood Hercules (+0.9%), Millat Tractors (+1.1%), The Searl Company (+0.9%) and Engro Corporation (+0.3%) added to the index," said analyst Adnan Sami Sheikh.

"Banks shed 146 points, while engineering sector led with a 12-point contribution. Retail favourites led volumes with Dost Steels churning out in anticipation of commissioning of its plant, which as per last official communication from the company will be in May," he added.

Overall, trading volumes dropped to 371 million shares compared with Tuesday's tally of 377 million.



Shares of 396 companies were traded. At the end of the day, 186 stocks closed higher and 186 declined while 24 remained unchanged. The value of shares traded during the day was Rs18.1 billion.

WorldCall Telecom was the volume leader with 38.9 million shares, gaining Rs0.27 to close at Rs3.2. It was followed by Dost Steels Limited with 25.4 million shares, losing Rs0.15 to close at Rs14.82 and Lotte Chemicals with 20.8 million shares, gaining Rs0.39 to close at Rs11.92.

Foreign institutional investors were net sellers of Rs151 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.