Market watch: Bears dominate as KSE-100 drops 391 points

Weekly review: KSE-100 stays under pressure in week marked by turbulence

KARACHI: In contrast to the rally at the stock market on Friday, bears dominated trading on Monday as the benchmark index lost over 450 points in intra-day trading.

Investors resorted to profit-booking amid pressure on stocks across the board on a weak earnings outlook. Although Sui Northern Gas Pipelines posted results above market expectations, the company could not sustain selling pressure as its stock price dropped from the preceding session.

After an initial spike, the KSE-100 index maintained its downward trajectory and finished trading in the red. Recent developments on the economic front also fuelled the selling pressure, pushing the index below the 37,000-point mark.

At the end of trading, the benchmark KSE 100-share Index recorded a decrease of 390.78 points, or 1.05%, to settle at 36,901.69.

Topline Securities, in its report, said despite confirmation by newly appointed Finance Adviser Dr Abdul Hafeez Sheikh that negotiations with the International Monetary Fund (IMF) were going on and there was no delay due to the replacement of finance minister, the stock market closed down by 391 points.

"Though the finance adviser tasked the Federal Board of Revenue (FBR) with simplifying the amnesty scheme, which is expected to end before the IMF bailout programme commences on July 1, it failed to encourage stock investors to make fresh buying," Topline said.

Commercial banks remained the worst performing sector, erasing 118 points from the benchmark index, followed by fertiliser and exploration and production sectors, which cumulatively struck 76 points off the index.

Overall, trading volumes decreased to 126 million shares compared with Friday's tally of 177.4 million. The value of shares traded during the day was Rs4.4 billion.

Shares of 305 companies were traded. At the end of the day, 62 stocks closed higher, 227 declined and 16 remained unchanged.

Lotte Chemical was the volume leader with 19.7 million shares, gaining Re1 to close at Rs16.08. It was followed by Pioneer Cement with 10.6 million shares, losing Rs0.37 to close at Rs25.22 and K-Electric with 10.1 million shares, losing Rs0.22 to close at Rs4.81.

Foreign institutional investors were net buyers of Rs160.1 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.