Market watch: KSE-100 fails to sustain gains, loses 129 points

Benchmark index decreases 0.32% to settle at 40,800.25

KARACHI: The KSE-100 index endured another dull session on Tuesday with no major interest from investors as participants remained on the sidelines awaiting policy decision on overcoming the balance of payments crisis.

The market opened upwards and gained 285.22 points in the initial two hours of trading as investors jumped to take benefit of attractive valuations. However, it could not sustain the initial gains and succumbed to selling pressure, with the index going down 129 points.

At close, the benchmark KSE 100-share Index recorded a decrease of 129.19 points or 0.32% to settle at 40,800.25.



Elixir Securities’ analyst Murtaza Jafar said equities failed to sustain initial gains, led by energy stocks, and closed in the red at 40,800.

He said Pakistan Petroleum (+1.36%), Pakistan Oilfields (+1.86%) and Oil and Gas Development Company (+0.56%) contributed 69 points to the index while the decline was led by financial stocks.

Among these, Habib Bank Limited (-1.82%), United Bank Limited (-1.23%), MCB Bank (-1.10%) and Bank Alfalah Limited (-1.92%) collectively chipped away 110 points from the index as investors expected the rise in interest rate would eventually lead to an increase in non-performing loans of the overall banking sector.

Nishat Chunian Limited (-0.69%) announced its FY18 result, posting earnings per share of Rs15.84 along with cash dividend of Rs4 per share.

“We expect the market to remain under pressure until clarity emerges on funding for the external account and fast depleting foreign exchange reserves,” the analyst added.



Overall, trading volumes edged up to 106.5 million shares compared with Monday’s tally of 106.3 million. The value of shares traded during the day was Rs5.31 billion.

Shares of 347 companies were traded. At the end of the day, 151 stocks closed higher, 180 declined and 16 remained unchanged.

Unity Foods was the volume leader with 9.2 million shares, losing Rs0.93 to close at Rs31.06. It was followed by TRG Pakistan with 8 million shares, losing Rs0.39 to close at Rs28.03 and Bank Alfalah with 5.7 million shares, losing Rs0.96 to close at Rs49.09.

Foreign institutional investors were net sellers of Rs562.3 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.