Market watch: KSE-100 dips further in absence of positive triggers

Benchmark index decreases 359.89 points to settle at 31,751.21

KARACHI: In line with the trend in the preceding trading session, the stock market fell on Monday as a lack of positive triggers kept investors sidelined.

The benchmark KSE-100 index opened downwards and continued to slide throughout the day as investors were concerned about the economic uncertainty amid unimpressive export data for August 2019.

Equities also came under pressure mainly due to the beginning of the rollover week and a lack of positive triggers.

At close, the benchmark KSE 100-share Index recorded a decrease of 359.89 points, or 1.12%, to settle at 31,751.21 points.

JS Global analyst Maaz Mulla said the sombre mood firmly gripped the market and showed no signs of relenting. "The KSE-100 index started off on a positive note, touching a high of 36 points, however, later it took a sharp U-turn hitting an intra-day low of 401 points," said Mulla.

On the news front, the IMF mission chief said inflation was expected to decline and the current account was adjusting rapidly. The transition to a market-determined exchange rate had started to deliver results and there had been a significant improvement in tax revenue collection, the IMF official said.

Selling pressure was witnessed in the cement sector where mostly stocks closed near their lower locks. Maple Leaf Cement (-6.4%), Pioneer Cement (-5%), DG Khan Cement (-4.8%) and Lucky Cement (-1.9%) were major losers of the sector.

Moreover, Oil and Gas Development Company (-3.1%) and Pakistan Petroleum (-2.4%) from the exploration and production sector closed in the red as crude oil prices edged lower in the international market. "Furthermore, we recommend investors to buy on dips," he added.

Overall, trading volumes decreased to 86.6 million shares compared with Friday's tally of 153.3 million. The value of shares traded during the day was Rs3.87 billion.

Shares of 345 companies were traded. At the end of the day, 95 stocks closed higher, 227 declined and 23 remained unchanged.

Maple Leaf Cement was the volume leader with 6.4 million shares, losing Re1 to close at Rs14.74. It was followed by PSO with 5.2 million shares, losing Rs0.83 to close at Rs152.67 and Fauji Cement XD with 4.3 million shares, losing Rs0.22 to close at Rs12.62.

Foreign institutional investors were net sellers of Rs77.4 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.