Market watch: Foreigners again net buyers but KSE-100 decreases 260 points
Benchmark index falls 0.56% to close at 46,071.86
PHOTO: EXPRESS
KARACHI:
The stock market showed a bearish trend on Friday as selling pressure pushed the KSE-100 Index near the 46,000 level even as foreign institutional investors continued to remain net buyers.
Stocks traded lower soon after trading began amid announcement of the Supreme Court’s (SC) verdict that clarified Nawaz Sharif’s disqualification is for life. While it gave investors clarity on the former premier’s political future, caution was exercised in the wake of the decision, dragging the index lower.
At close, the benchmark KSE 100-share Index recorded a decrease of 259.85 points or 0.56% to settle at 46,071.86.
JS Research analyst Maaz Mulla said the market kicked off on a positive note, but traded sideways for most part of the day.
Market watch: KSE-100 loses 155 points amid lack of positive triggers
“However, in the second half of the session it succumbed to pressure as the SC announced its final landmark verdict,” said Mulla.
“In its brief decision, the SC ruled that disqualification under Article 62(1)(f) of the Constitution was for life. On the economic front, foreign exchange reserves declined yet again.
“Moreover, power sector receivables crossed the Rs805-billion mark. The day’s major heavyweights namely HBL (-0.73%), OGDC (-0.89%), PPL (-0.74%), UBL (-1.68%), ENGRO (-0.20%), LUCK (-2.47%), MCB (-1.65%), POL (-0.12%) and FFC (-0.21%) cumulatively contributed a negative 184 points.
Moreover, traded volumes plunged by 41% to 197 million shares, while the value of trade decreased to $76 million, Mullah added.
“Investors were active in KEL as the federal cabinet ratified the decision of Cabinet Committee on Privatisation (CCoP) for the issuance of National Security Certificate (NSC) for the sale of 66.4% shares in K-Electric Limited to Shanghai Electric Power.
Market watch: KSE-100 ends flat amid no major activity
“Moreover, financials and cement sectors once again closed in the red due to profit taking. Moving forward, we expect overall activity to remain volatile and under pressure in coming sessions with flows from foreigners and local institutions guiding market direction.”
Overall, trading volumes decreased to 197.4 million shares compared with Thursday’s tally of 333 million.
Shares of 367 companies were traded. At the end of the day, 132 stocks closed higher, 217 declined while 18 remained unchanged. The value of shares traded during the day was Rs8.8 billion.
K-Electric Limited was the volume leader with 36.2 million shares, gaining Rs0.05 to close at Rs7.11. It was followed by Engro Polymer with 10.9 million shares, losing Rs0.69 to close at Rs39.22 and Fauji Food with 10.6 million shares, gaining Rs0.38 to close at Rs40.59.
Foreign institutional investors were net buyers of Rs548 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.
The stock market showed a bearish trend on Friday as selling pressure pushed the KSE-100 Index near the 46,000 level even as foreign institutional investors continued to remain net buyers.
Stocks traded lower soon after trading began amid announcement of the Supreme Court’s (SC) verdict that clarified Nawaz Sharif’s disqualification is for life. While it gave investors clarity on the former premier’s political future, caution was exercised in the wake of the decision, dragging the index lower.
At close, the benchmark KSE 100-share Index recorded a decrease of 259.85 points or 0.56% to settle at 46,071.86.
JS Research analyst Maaz Mulla said the market kicked off on a positive note, but traded sideways for most part of the day.
Market watch: KSE-100 loses 155 points amid lack of positive triggers
“However, in the second half of the session it succumbed to pressure as the SC announced its final landmark verdict,” said Mulla.
“In its brief decision, the SC ruled that disqualification under Article 62(1)(f) of the Constitution was for life. On the economic front, foreign exchange reserves declined yet again.
“Moreover, power sector receivables crossed the Rs805-billion mark. The day’s major heavyweights namely HBL (-0.73%), OGDC (-0.89%), PPL (-0.74%), UBL (-1.68%), ENGRO (-0.20%), LUCK (-2.47%), MCB (-1.65%), POL (-0.12%) and FFC (-0.21%) cumulatively contributed a negative 184 points.
Moreover, traded volumes plunged by 41% to 197 million shares, while the value of trade decreased to $76 million, Mullah added.
“Investors were active in KEL as the federal cabinet ratified the decision of Cabinet Committee on Privatisation (CCoP) for the issuance of National Security Certificate (NSC) for the sale of 66.4% shares in K-Electric Limited to Shanghai Electric Power.
Market watch: KSE-100 ends flat amid no major activity
“Moreover, financials and cement sectors once again closed in the red due to profit taking. Moving forward, we expect overall activity to remain volatile and under pressure in coming sessions with flows from foreigners and local institutions guiding market direction.”
Overall, trading volumes decreased to 197.4 million shares compared with Thursday’s tally of 333 million.
Shares of 367 companies were traded. At the end of the day, 132 stocks closed higher, 217 declined while 18 remained unchanged. The value of shares traded during the day was Rs8.8 billion.
K-Electric Limited was the volume leader with 36.2 million shares, gaining Rs0.05 to close at Rs7.11. It was followed by Engro Polymer with 10.9 million shares, losing Rs0.69 to close at Rs39.22 and Fauji Food with 10.6 million shares, gaining Rs0.38 to close at Rs40.59.
Foreign institutional investors were net buyers of Rs548 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.