Market watch: KSE-100 loses ground as cement, bank stocks face selling pressure

Benchmark index decreases 158.36 points to close at 45,718.34

KARACHI: The stock market endured a bearish session on Wednesday as investors stood on the sidelines a couple of days before the announcement of federal budget for 2018-19.

The KSE-100 Index opened upwards, but soon after selling pressure emerged in cement and banking sectors that pulled the index down.

At close, the benchmark KSE 100-share Index recorded a decrease of 158.36 points or 0.35% to settle at 45,718.34.

JS Global analyst Danish Ladhani said Pakistan equities closed negative with the benchmark index settling down at 45,718.

"The market kicked off on a positive note, hitting the intra-day high and low of 65 points and 195 points, respectively. The market traded sideways throughout the day, but in the second half it succumbed to the pressure as cement and financial stocks received some hammering," Ladhani said.



On the economic front, the tax amnesty scheme was approved by the Senate Standing Committee on Finance.

Major heavyweights namely Habib Bank (-0.80%), Oil and Gas Development Company (-0.57%), Pakistan Petroleum (-0.17%), United Bank (-0.64%), Lucky Cement (-0.73%), Pakistan Oilfields (-0.80%), Hubco (-0.53%) and Fauji Fertiliser Company (-0.54%) cumulatively erased 93 points from the index.

Cement stocks closed in the red with Lucky Cement losing 0.73% and DG Khan Cement 2.23%. Maple Leaf Cement (-2.28%) and Pioneer Cement (-0.99%) announced 9MFY18 earnings per share of Rs6.01 and Rs5.06 respectively with no cash payout.

Correspondingly, financial stocks dragged the index further down as Habib Bank (-0.80%), United Bank (-0.64%) and Bank AL Habib (-0.24%) closed in the red zone.

MCB Bank (+0.70%) announced 1Q2018 earnings per share of Rs3.97 with a cash payout of Rs4 per share whereas Faysal Bank (-0.59%) declared earnings per share of Rs0.92 with no cash dividend.

In the fertiliser sector, Fauji Fertiliser Company (-0.54%) announced 1Q2018 results where the company posted earnings per share of Rs1.61 with a cash payout of Rs1.75 per share.



"We expect overall activity to remain range bound in coming sessions with flows from foreigners and local institutions guiding market direction," the analyst said.

Overall, trading volumes increased to 180 million shares compared with Tuesday's tally of 154 million.

Shares of 393 companies were traded. At the end of the day, 132 stocks closed higher, 237 declined while 24 remained unchanged. The value of shares traded during the day was Rs8.8 billion.

Engro Polymer was the volume leader with 23.9 million shares, gaining Rs0.92 to close at Rs39.25. It was followed by Pak Elektron XD with 20.1 million shares, losing Rs1.90 to close at Rs44.06 and Unity Foods with 12.3 million shares, gaining Rs1.57 to close at Rs33.05.

Foreign institutional investors were net sellers of Rs133.95 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.