Market watch: KSE-100 falls on concern over foreign outflows

Benchmark index decreases 193.36 points to settle at 38,115.81

KARACHI: The stock market experienced a bearish session on Tuesday as investors were concerned about a weak corporate earnings outlook.

Economic uncertainty, concern over foreign fund outflow and dismal data of foreign direct investment which dropped 35% in Jul-Nov 2018 played the role of a catalyst in negative run of the KSE-100 index. Oil-sector stocks fell following a decrease in global crude prices.

At the end of trading, the benchmark KSE 100-share Index recorded a decrease of 193.36 points or 0.5% to settle at 38,115.81.

Elixir Securities' analyst Murtaza Jafar said equities closed another day in the red, down 193 points at 38,116. After a bearish start, the index managed to recover lost ground for a brief period but it failed to sustain the momentum as exploration and production stocks tracked the decline in international oil prices, he pointed out.



“Activity remained dull throughout the day with only 68 million shares changing hands on the benchmark KSE-100 index,” the analyst said.

Volume charts were led by K-Electric (+2.93%), Bank AL Habib (-0.69%), The Bank of Punjab (-1.39%) and Engro Polymer and Chemicals (+1.65%). These collectively contributed nearly 30 million shares or 30% of the total traded volume in the regular market.

“We expect the consolidation phase to continue in the near term with the benchmark KSE-100 index moving in the range of 37,700 support level and 38,600 resistance level,” the analyst added.



Overall, trading volumes increased to 90.6 million shares compared with Monday's tally of 66.8 million. The value of shares traded during the day was Rs4.13 billion.

Shares of 332 companies were traded. At the end of the day, 111 stocks closed higher, 194 declined and 27 remained unchanged.

K-Electric was the volume leader with 14.29 million shares, gaining Rs0.17 to close at Rs5.97. It was followed by Bank AL Habib with 5.67 million shares, losing Rs0.51 to close at Rs73.49 and The Bank of Punjab with 5.65 million shares, losing Rs0.18 to close at Rs12.77.

Foreign institutional investors were net sellers of Rs253.7 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.