Market watch: KSE-100 ends in the red amid volatile trading

Benchmark index drops 128.43 points to settle at 45,259.34

KARACHI: The stock market endured a volatile session on Friday as the index oscillated between red and black zones to end trading below 45,300 points.

The KSE-100 Index opened on a positive note, but it failed to sustain the momentum as selling pressure mounted.

Oil, engineering, banking, chemical and auto stocks experienced selling by investors. By midday, buying activity emerged as market players resorted to stock accumulation at attractive valuations, which helped the KSE-100 recover.

However, the index dived to hit the intra-day low at 45,153.92 just before the close of trading.

At close, the benchmark KSE 100-share Index recorded a decrease of 128.43 points or 0.28% to settle at 45,259.34.



JS Global analyst Maaz Mulla said Pakistan equities closed negative with the benchmark KSE-100 Index settling down at 45,259.

"The market kicked off on a positive note, traded sideways in the morning session and hit an intra-day high of 138 points. However, it succumbed to the pressure later, touching an intra-day low of 234 points as selling was witnessed in cement and financial stocks," Mulla said.

On the economic front, Pakistan's foreign exchange reserves fell to $17.545 billion during the week ended April 13 from $17.639 billion a week ago.

Major heavyweights including Habib Bank (-1.05%), Pakistan Petroleum (-0.54%), United Bank (-2.19%), Engro (-0.29%), MCB Bank (-0.32%), Lucky Cement (-2.07%), Pakistan Oilfields (-1.71%) and Hubco (-1.18%) cumulatively contributed 177 points to the index's decline.

Selling was witnessed in financial stocks where major banks namely Habib Bank (-1.05%), United Bank (-2.19%) and MCB Bank (-0.32%) closed in the red.

Moreover, Bank Alfalah (+0.28%) announced 1Q2018 earnings per share of Rs2.02 with no cash payout. Mixed sentiments were seen in the fertiliser sector where Engro (-0.29%) and Fauji Fertilizer Company (-0.40%) closed in the red.



Engro Fertilizers (+1.90%) announced 1Q2018 consolidated earnings per share of Rs2.91 with no cash dividend.

"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," Mulla added.

Overall, trading volumes fell to 144 million shares compared with Thursday's tally of 183 million.

Shares of 369 companies were traded. At the end of the day, 142 stocks closed higher, 206 declined while 21 remained unchanged. The value of shares traded during the day was Rs6.5 billion.

Lotte Chemical XD was the volume leader with 21.8 million shares, losing Rs0.30 to close at Rs10.56. It was followed by Engro Polymer with 8.3 million shares, gaining Rs0.37 to close at Rs38.82 and Azgard Nine with 8 million shares, losing Rs0.94 to close at Rs14.97.

Foreign institutional investors were net sellers of Rs361.8 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.