Market watch: KSE-100 dips below 46,500 as profit-booking continues

Benchmark index decreases 103.89 points to close at 46,476.73

KARACHI: The KSE-100 Index succumbed to profit-taking again amid worries over Pakistan’s increasing trade deficit with the benchmark inching below the 46,500 mark.

A positive start to the day was followed by profit-booking that eventually landed the index in the red with little support.

At close on Tuesday, the benchmark KSE 100-share Index recorded a decrease of 103.89 points or 0.22% to settle at 46,476.73.

JS Research analyst Maaz Mulla said equities closed negative after the market kicked off on a positive note.

“On the economic front, trade deficit widened to $27.3 billion in 9MFY18, higher by 17.3% year-on-year. Moreover, according to the central bank, Saudi economic reforms may further upset remittance inflows.



“Once again, pressure was on financial and cement sectors where major laggards were BAHL (-4.09%), NBP (-1.60%), BAFL (-1.07%), MCB (-0.89%), HBL (-0.80%), CHCC (-0.79%), FCCL (-1.16%), MLCF (-0.13%) and DGKC (-0.22%).

“Traded volumes surged by 8% to 220 million shares while value traded decreased to $68 million. Top volume stocks were LOTCHEM (+2.02%), EPCL (+0.57%), NRSL (+0.44%) and TRG (-0.35%).

“On the flip side, E&P sector was the major mover, where PPL (+2.10%) and POL (+0.82%) closed in the green as the international oil market bounced back after a speech by Chinese President Xi Jinping eased concerns about a trade conflict between the United States and China.

“Moving forward, we expect overall activity to remain volatile in coming sessions with flows from foreigners and local institutions guiding market direction,” he added.



According to a Topline Securities’ report, investors remained sidelined as formal implication of a major development (tax reforms package) is pending parliament’s consent.

“However, activity in small cap stocks remained investors’ top pick, where LOTCHEM and EPCL cumulatively generated a volume of 34 million shares, followed by market talks about possible withdrawal/removal of Gas Infrastructure Development Cess (GIDC) on fuel and power expense,” the report added.

“E&Ps sector added 60 points to the index mainly on the back of rise in crude oil prices as trade spat between the US and China softened.



Trading volumes increased to 220 million shares compared with Monday's tally of 203 million.

Shares of 372 companies were traded. At the end of the day, 210 stocks closed higher, 146 declined while 16 remained unchanged. The value of shares traded during the day was Rs7.9 billion.

Lotte Chemical Pakistan was the volume leader with 18 million shares, gaining Rs0.20 to close at Rs11.3. It was followed by Engro Polymer and Chemicals with 15.5 million shares, gaining Rs0.22 to close at Rs38.90 and TRG Pakistan with 9.4 million shares, losing Rs0.13 to close at Rs36.84.

Foreign institutional investors were net buyers of Rs196 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.