Market watch: KSE-100 loses 73 points in volatile session

Benchmark index decreases 0.23% to settle at 32,111.1

KARACHI: Bearish momentum once again prevailed at the Pakistan Stock Exchange on Friday as the KSE-100 index slipped 73 points in a highly volatile session.

Range bound trading was witnessed throughout the day. The index spiked as soon as trading began but volatility emerged immediately as the index oscillated between red and green zones. Nevertheless, the first session ended with a gain of 62 points.

The second session began on a negative note and the index maintained the downtrend. A number of gains made during the session were wiped out, resulting in the index closing with a loss.

At close, the benchmark KSE 100-share Index recorded a decrease of 72.93 points, or 0.23%, to settle at 32,111.1 points.

Arif Habib Limited, in its report, stated that the market remained range bound, trading above 32,000 and fluctuating between +149 points and -129 points during the day.

"Volumes again registered a healthy growth from 137 million shares on Thursday to 153 million shares on Friday," it said. "The oil chain remained under selling pressure with the exception of Pakistan State Oil (PSO) which recorded a considerable rise."

Financial, steel and cement sectors also fell, which brought the index under pressure in the second session.

Maple Leaf Cement issued its financial result where it announced 85% right share issue besides a nominal dividend of 5%. By the end of the session, Maple Leaf hit its lower circuit and closed at that level.

The cement sector led the volumes with trading in 26.3 million shares, followed by the technology sector (16 million) and chemical sector (13.4 million).

Among individual stocks, Maple Leaf Cement registered trading in 18 million shares, followed by TRG Pakistan (6.9 million) and Pakistan International Bulk Terminal (6.6 million), the report added.

JS Global analyst Maaz Mulla said KSE-100 index movements were like a see-saw as the bourse moved between green and red zones, touching the intra-day high of +148 points and low of -129 points to close at 32,111.

Total volumes were recorded at 153 million shares, up 12%. Maple Leaf Cement (-5.9%) led the volumes with almost 18 million shares changing hands as the company announced its FY19 result, where it posted earnings per share (EPS) of Rs4.14 and cash payout of Rs0.50 per share.

Furthermore, the company announced the issuance of 85% right shares at a price of Rs12 per share.

Mughal Iron (-4%) from the steel sector also declared its FY19 result, posting EPS of Rs5.46 and cash dividend of Rs1.20 per share.

Selling pressure was witnessed in the cement sector as investors opted to book profit where DG Khan Cement (-3.1%), Pioneer Cement (-4.8%), Maple Leaf Cement (-5.9%) and Lucky Cement (-1.8%) were the major losers.

"Moving forward, we expect the market to trade above 32,000 and recommend investors to buy on dips," the analyst said.

Overall, trading volumes increased to 153.3 million shares compared with Thursday's tally of 136.6 million. The value of shares traded during the day was Rs5.8 billion.

Shares of 351 companies were traded. At the end of the day, 138 stocks closed higher, 195 declined and 18 remained unchanged.

Maple Leaf Cement was the volume leader with 18 million shares, losing Rs0.98 to close at Rs15.74. It was followed by TRG Pakistan with 6.9 million shares, losing Rs0.74 to close at Rs13.31 and Pakistan International Bulk Terminal with 6.6 million shares, losing Rs0.22 to close at Rs7.54.

Foreign institutional investors were net buyers of Rs246.7 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.