Market watch: KSE-100 records lowest trading in 3 years, ends in the red

Benchmark index drops 431.41 points to close at 49,526.92

KARACHI: The KSE-100 index continued its downward course to close the week down by 431.41 points with lowest volumes in almost three years.

At the end of trading on Friday, the benchmark KSE 100-share Index recorded a fall of 0.86% at 49,526.92.

Elixir Securities, in its report, stated Pakistan equities slipped by as much as 0.9% on the last day of the week on across-the-board profit-taking amid record thin activity. Volumes on the benchmark KSE-100 index were the lowest in almost three years.

"The market opened on a lacklustre note and drifted lower as the session progressed with index names witnessing very selective participation likely due to shorter trading duration on Friday during Ramazan," said analyst Ali Raza.



Almost all sectors closed lower and pulled the benchmark index to test and close near 49,500, barring select pharma stocks that ended higher on reported institutional interest.

"We see foreigners' activity to guide market direction next week with volumes picking up as investors look forward to the implementation of much-awaited leverage product that is expected to bring fresh flows," Raza added.

JS Global analyst Arhum Ghous said the market underwent correction with prices declining for most stocks, pushing the KSE-100 index to 49,527, 431 points below the last trading day.

"Commercial bank heavyweights including MCB Bank (-1.25%), Habib Bank (-1.65%), United Bank (-1.82%) and National Bank (-1.35%) cumulatively contributed -130 points to the market," said Ghous.



In the auto sector, Indus Motor (-0.97%) declined on the back of news that the company had recalled 2,700 cars due to faulty mounting bolts.

In spite of positive news in the cement sector about price increase, stocks in the sector shed points in the trading session.

Lucky Cement (-0.43%), DG Khan Cement (-0.83%) and Kohat Cement (-1.02%) were major laggards of the sector.

"Trading activity was led by the cement sector and the chemical sector with 32 and 31 million shares traded respectively," the analyst said.

"Moving forward, we expect the market to remain under pressure and recommend investors to stay cautious at current levels."



Overall, trading volumes dropped to 208 million shares compared with Thursday's tally of 268 million.

Shares of 348 companies were traded. At the end of the day, 95 stocks closed higher and 231 declined while 22 remained unchanged. The value of shares traded during the day was Rs8.2 billion.

Power Cement (right shares) was the volume leader with 25.7 million shares, losing Rs0.39 to close at Rs1.20. It was followed by Engro Polymer with 18.8 million shares, losing Rs1.19 to close at Rs36.90 and WorldCall Telecom with 15.8 million shares, gaining Rs0.25 to close at Rs3.51.

Foreign institutional investors were net buyers of Rs792 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.