Market watch: KSE-100 stages recovery after 680-point intra-day plunge

Benchmark index still finishes with 0.62% decline to close at 43,795 points

Our Correspondent May 09, 2018
Benchmark index still finishes with 0.62% decline to close at 43,795 points. PHOTO: AFP

KARACHI: The KSE-100 recovered from an intra-day plunge of 680 points, but still ended negative as the losing streak extended into the seventh session on Wednesday.

A brief open in the positive was followed by persistent selling that eventually landed the KSE-100 to hit an intra-day low of 43,386.63 before buying momentum took the index near 43,800.

Investors treaded with caution over the ongoing political situation regarding the interim government and NAB cases on former prime minister Nawaz Sharif. Later, attractive valuations induced investors to resume buying, which helped the index stage a partial recovery.

At close, the benchmark KSE 100-share Index finished with a decrease of 271.96 points or 0.62% to settle at 43,795.

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Elixir Securities, in its post-close note, said equities ended lower as tension on geopolitical front and lack of positive triggers on the domestic side weighed most heavily on the market.

“Almost all sectors barring oil explorers contributed to the declines with tension creeping up as US announced abandoning its 2015 accord to curb Iran's nuclear programme; a move that could increase risk of conflicts in the Middle East.

“Oil stocks initially opened gap up as investors tracked rebound in crude to its highest level since 2014, and later on erased morning gains on institutional profit-taking with the sector closing nearly flat.

“The index dropped by over 1.5% or 680 points in intra-day trading to test the 43,400 level and then recovered in the afternoon by as much as +0.9% or 410 points on institutional cherry-picking across financials, cements and fertilisers.

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“We expect volatile trading in the near-term with most investors preferring to wait out the political and economic uncertainty gripping the country.”

Overall, shares of 378 companies were traded. At the end of the day, 93 stocks closed higher, 267 declined while 18 remained unchanged. The value of shares traded during the day was Rs7.96 billion.

Trading volumes rose to 191.9 million shares compared with Tuesday's tally of 153.5 million.

First Dawood Investment was the volume leader with 11.1 million shares, gaining Rs1 to close at Rs4.01. It was followed by Invest Capital Investment with 10.4 million shares, gaining Rs1 to close at Rs2.76 and Trust Investment Bank with 9.6 million shares, gaining Rs0.97 to close at Rs3.04.

Foreign institutional investors were net sellers of Rs562.7 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.


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