KSE-100 ends almost flat after intra-day recovery

Benchmark-100 index falls marginally to end at 43,783.55 points


Our Correspondent July 14, 2017
Stock exchange. PHOTO: AFP

KARACHI: An intra-day recovery helped the KSE-100 Index end only marginally negative after it had plunged over 700 points as political uncertainty continued to play on investors’ minds.

Buyers continued to sit on the fence until the index had plunged close to 43,000 as value hunters then took the opportunity to target attractive valuations.

At close on Thursday, the benchmark KSE 100-share Index finished with a nominal decrease of 0.02%, or 8.64 points, to end at 43,783.55, with value-seeking investors almost pulling the index in the green zone.

Elixir securities, in its report, said equities managed a flattish close as buying near the end of the session helped KSE100 Index to recover from the day’s losses.



“The day kicked off on a lacklustre note with the Index trading in the green zone for a brief period and then entering a path of steady downtrend as stocks plummeted to selling amid dearth of serious buyers on screen,” the report stated.

“Investors, as expected, remained cautious and refrained from participating aggressively due to on-going uncertainty on domestic political front. Notable blue chips across Oils, Cements and Financials bore the major brunt and dragged KSE100 Index down by as much as 1.7% intra-day to 43,000 points.

“However, buying in the last 30 minutes of trading helped Index recover as institutional investors and HNWs cherry picked financials, fertilizers and select index names.

“We expect volatile and choppy trading to continue, with most investors participating selectively and preferring to wait out the impending hearing of the first family before the Supreme Court on Monday July 17,” the report added.

JS Global analyst Arham Ghous said volatility prevailed at the bourse with extremely low exchange volumes of 125 million shares.



“KSE-100 index made an intraday high of +329 points and an intraday low of -731 points to close at 43,783 (-8 points). Despite the mundane activity, market appeared to consolidate as prices have fallen down to extremely attractive levels,” he said.

“It was evident from substantial recovery witnessed during the last 30 minutes of the session, as value-seeking investors started accumulating MSCI stocks which pulled the market into the green zone.

“Commercial banks’ heavyweights closed in the green zone, cumulatively contributing +87 points to the index. NBP (+2.65%), MCB (+1.23%) and HBL (+1.57%) were among the gainers from the sector.

On the other hand, losses in the E&P sector dragged the benchmark index down by -42 points as oil closed lower on account of concerns over rising production in the US. OGDC (-0.94%), POL (-0.90%) and PPL (-0.36%) were the major losers in the aforementioned sector.

“Volume leader for the day was again KEL (+0.44), with 20 million shares of the power distributor changing hands.

“As MSCI value stocks have come down to attractive multiples, we recommend long-term investors to buy on dips. However, the immediate-term price movements still depend on political developments,” Arham added.

Overall, trading volumes fell to 165 million shares compared with Wednesday’s tally of 215 million.

Shares of 345 companies were traded. At the end of the day, value of 146 stocks closed higher, 182 declined while 17 remained unchanged. The value of shares traded during the day was Rs10.6 billion.

K-Electric was the volume leader with 19.7 million shares, gaining Rs0.03 to close at Rs6.79. It was followed by TRG Pakistan with 8.4 million shares, losing Rs0.55 to close at Rs35.58 and Engro Polymer with 6.56 million shares, losing Rs0.34 to close at Rs32.94.

Foreign institutional investors were net buyers of R176 million during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, July 14th, 2017.

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