Benchmark index inches up 2.16 points to finish trading at 43,682.84. PHOTO: AFP
The benchmark index shot up as soon as trading began on Tuesday, but at the end it showed only a meagre gain of 2.16 points and stood at 43,682.84.
Global equities’ sell-off after the US threat of tariff measures against imports from China and a plunge in global crude oil prices exerted pressure during mid-session. However, strong data on auto sales and oil production for Jul-May 2017-18 in Pakistan and reports of a fall in circular debt in the energy sector played the role of a catalyst.
At close, the benchmark KSE 100-share Index recorded a thin gain of 2.16 points to settle at 43,682.84.
Market watch: Undeterred by foreign selling, KSE-100 surges 434 points
Elixir Securities’ analyst Muhammad Arbash said equities closed flat with the benchmark index settling at 43,683, up a mere two points.
He said trading in blue-chip stocks was dull initially, however, large-cap banks slid gradually throughout the day with MCB Bank (-2.5%) and Habib Bank (-1.45%) leading the decline on reports of continued selling by foreign investors.
Pakistan Oilfields (-1.24%) and Oil and Gas Development Company (-1.55%) also pulled down the index following the decline in international crude oil prices and market expectations of a reduction in production cuts by the Organisation of Petroleum Exporting Countries (Opec) in its upcoming meeting at the weekend.
On the other hand, the fertiliser sector stole the show as Fauji Fertiliser (+4.44%), Engro Fertilizers (+1.97%) and Fauji Fertiliser Bin Qasim (+0.99%) closed positive on reports of urea shortage and resultant increase in retail prices by dealers. Investors also bet on another round of price hikes by the manufacturers if the government failed to release overdue subsidies.
“(We) expect the market to remain range bound this week as locals keenly watch out for the FATF decision on Pakistan and success of amnesty scheme, which is due to expire by the end of this month,” the analyst added.
Market watch: Despite heavy foreign selling, KSE-100 advances 355 points
Overall, trading volumes increased to 123.3 million shares compared with Thursday’s tally of 117.5 million. The value of shares traded during the day was Rs5.8 billion.
Shares of 325 companies were traded. At the end of the day, 145 stocks closed higher, 148 declined while 32 remained unchanged.
Power Cement was the volume leader with 24.6 million shares, gaining Rs0.39 to close at Rs8.99. It was followed by TRG Pakistan with 7.5 million shares, gaining Rs1.46 to close at Rs30.68 and Engro Fertilizers with 5.3 million shares, gaining Rs1.47 to close at Rs76.23.
Foreign institutional investors were net sellers of Rs52.3 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.
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