Market watch: KSE-100 slides 343 points owing to dismal earnings outlook
Benchmark index decreases 1.06% to settle at 32,103.27
Benchmark index decreases 1.06% to settle at 32,103.27. PHOTO: AFP
KARACHI:
Bears returned to the bourse once again on Friday and pushed the KSE-100 index down by 343 points owing to a dismal corporate earnings outlook.
The World Bank's draft report, which downgraded Pakistan's ranking on almost all fiscal management-related indicators, contributed to the market's fall.
According to Arif Habib Corp's Ahsan Mehanti, dismal financial results in automobile and fertiliser sectors kept putting pressure throughout the trading session. Bank stocks outperformed on higher banking spreads and deposits, he added.
Earlier, trading began on a negative note and the KSE-100 index followed a downward trajectory, ending the first session with a loss of 160 points. The second session extended the losses and the day closed in the red.
At the end of trading, the benchmark KSE 100-share Index recorded a decrease of 343.13 points, or 1.06%, to settle at 32,103.27.
According to a report of Arif Habib Limited, the market continued to slide down, where the index saw an erosion of 414 points in total and ended down 317 points (unadjusted). Exploration and production, refinery, cement, automobile, steel and oil and gas marketing sectors contributed to the selling pressure.
"Only small and mid-cap banks remained unscathed, among which The Bank of Punjab topped the chart with trading in 24 million shares out of a total of 26.5 million shares in the banking sector," it said.
The technology sector followed banks in terms of volumes with trading in 11.6 million shares.
Cement stocks trailed technology shares with trading in 8.2 million shares. DG Khan Cement hit its lower circuit and Maple Leaf Cement traded mostly in the red, the report added.
JS Global analyst Maaz Mulla said the KSE-100 closed the week on a negative note, touching an intra-day low of -414 points to close at 32,103 level (down 343 points).
"The divergent trend in the trading session can be attributed to the last day for futures' rollover," he said. "Bears emerged as winners as the Pakistan Stock Exchange managed to close only once in the green during the week."
Traded volumes were up 36% day-on-day at 87 million shares while traded value dropped 18% to $12 million.
The Bank of Punjab (+2.1%), was the primary contributor to the total market volume, followed by Pak Elektron (-4%) and Maple Leaf Cement (-4.6%).
Selling pressure was witnessed in the cement sector where Pioneer Cement (-5%), DG Khan Cement (-5%), Maple Leaf Cement (-4.69%), Cherat Cement (-4.8%) and Fauji Cement (-4.1%) were the major losers.
Oil and Gas Development Company (-1%), Pakistan Oilfields (-0.3%) and Pakistan Petroleum (-0.2%) from the exploration and production sector remained in the red as crude oil prices edged lower in the international market.
Fauji Fertiliser Bin Qasim (-5.9%) from the fertiliser sector declared its 1HCY19 results. The company posted a loss of Rs2.09 per share during the period.
"Moving ahead, we recommend investors to stay cautious and adopt sell-on-strength strategy," the analyst added.
Overall, trading volumes increased to 86.6 million shares compared with Thursday's tally of 63.5 million. The value of shares traded during the day was Rs1.94 billion.
Shares of 310 companies were traded. At the end of the day, 50 stocks closed higher, 243 declined and 17 remained unchanged.
The Bank of Punjab was the volume leader with 23.8 million shares, gaining Rs0.17 to close at Rs8.23. It was followed by WorldCall Telecom with 7.2 million shares, losing Rs0.01 to close at Rs0.59 and Pak Elektron with 4.1 million shares, losing Rs0.63 to close at Rs15.12.
Foreign institutional investors were net buyers of Rs118 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.
Bears returned to the bourse once again on Friday and pushed the KSE-100 index down by 343 points owing to a dismal corporate earnings outlook.
The World Bank's draft report, which downgraded Pakistan's ranking on almost all fiscal management-related indicators, contributed to the market's fall.
According to Arif Habib Corp's Ahsan Mehanti, dismal financial results in automobile and fertiliser sectors kept putting pressure throughout the trading session. Bank stocks outperformed on higher banking spreads and deposits, he added.
Earlier, trading began on a negative note and the KSE-100 index followed a downward trajectory, ending the first session with a loss of 160 points. The second session extended the losses and the day closed in the red.
At the end of trading, the benchmark KSE 100-share Index recorded a decrease of 343.13 points, or 1.06%, to settle at 32,103.27.
According to a report of Arif Habib Limited, the market continued to slide down, where the index saw an erosion of 414 points in total and ended down 317 points (unadjusted). Exploration and production, refinery, cement, automobile, steel and oil and gas marketing sectors contributed to the selling pressure.
"Only small and mid-cap banks remained unscathed, among which The Bank of Punjab topped the chart with trading in 24 million shares out of a total of 26.5 million shares in the banking sector," it said.
The technology sector followed banks in terms of volumes with trading in 11.6 million shares.
Cement stocks trailed technology shares with trading in 8.2 million shares. DG Khan Cement hit its lower circuit and Maple Leaf Cement traded mostly in the red, the report added.
JS Global analyst Maaz Mulla said the KSE-100 closed the week on a negative note, touching an intra-day low of -414 points to close at 32,103 level (down 343 points).
"The divergent trend in the trading session can be attributed to the last day for futures' rollover," he said. "Bears emerged as winners as the Pakistan Stock Exchange managed to close only once in the green during the week."
Traded volumes were up 36% day-on-day at 87 million shares while traded value dropped 18% to $12 million.
The Bank of Punjab (+2.1%), was the primary contributor to the total market volume, followed by Pak Elektron (-4%) and Maple Leaf Cement (-4.6%).
Selling pressure was witnessed in the cement sector where Pioneer Cement (-5%), DG Khan Cement (-5%), Maple Leaf Cement (-4.69%), Cherat Cement (-4.8%) and Fauji Cement (-4.1%) were the major losers.
Oil and Gas Development Company (-1%), Pakistan Oilfields (-0.3%) and Pakistan Petroleum (-0.2%) from the exploration and production sector remained in the red as crude oil prices edged lower in the international market.
Fauji Fertiliser Bin Qasim (-5.9%) from the fertiliser sector declared its 1HCY19 results. The company posted a loss of Rs2.09 per share during the period.
"Moving ahead, we recommend investors to stay cautious and adopt sell-on-strength strategy," the analyst added.
Overall, trading volumes increased to 86.6 million shares compared with Thursday's tally of 63.5 million. The value of shares traded during the day was Rs1.94 billion.
Shares of 310 companies were traded. At the end of the day, 50 stocks closed higher, 243 declined and 17 remained unchanged.
The Bank of Punjab was the volume leader with 23.8 million shares, gaining Rs0.17 to close at Rs8.23. It was followed by WorldCall Telecom with 7.2 million shares, losing Rs0.01 to close at Rs0.59 and Pak Elektron with 4.1 million shares, losing Rs0.63 to close at Rs15.12.
Foreign institutional investors were net buyers of Rs118 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.