Market watch: Index ends on flattish note amid lack of triggers

Benchmark index decreases 11.63 points to settle at 43,207.04

KARACHI: Stocks replicated the performance of the previous session, albeit closing on a negative note amid institutional profit-taking and lack of positive triggers.

The KSE-100 opened on a positive note and marched up to hit an intra-day high of 43,468.22 points. However, the momentum could not be sustained as certain economic indicators dragged the index in the red. The dismal data regarding auto sales and forecasts of higher inflation and fiscal deficits by Fitch kept investors cautious.

At close, the benchmark KSE 100-share Index recorded a decrease of 11.63 points, or 0.03%, to settle at 43,207.04.

According to AHL Research, "Market replicated the performance seen Monday with a sway from +250 points to -123 points and closing the session down 12 points.

Mainly cyclical stocks faced the music with major selling pressure was witnessed in cement (due to higher coal prices) and steel sector. E&P sector also saw selling pressure, whereby OGDC, PPL and POL traded in red territory.

"EPCL also faced heavy selling after announcement of issuance of preference shares. Banking sector stocks remained in the limelight with trading volumes of 44.7 million shares, followed by technology (42.4 million) and cement (26.6 million)."

Stocks that contributed positively include ENGRO (+45 points), UBL (+34 points), HUBC (+23 points), DAWH (+20 points) and EFERT (+7 points). Stocks that contributed negatively include PPL (-27 points), OGDC (-23 points), SNGP (-16 points), COLG (-13 points), and MCB (-10 points).

Aba Ali Habib, in its report, stated volumes in broader market declined 32% day-on-day due to lack of positive triggers in bourse.

In early trading hours, the index gained over 249 points, however, weak automobile sales data pushed the benchmark in the red territory.

Sector-wise, oil sector remained active throughout the trading session as the oil prices in international market continue to march lower.

Overall, trading volumes fell to 249.7 million shares compared with Monday's tally of 366.1 million. The value of shares traded during the day was Rs7.8 billion.

Shares of 376 companies were traded. At the end of the day, 173 stocks closed higher, 187 declined and 16 remained unchanged.

The Bank of Punjab was the volume leader with 18 million shares, gaining Rs0.10 to close at Rs13.38. It was followed by TRG Pakistan with 16.5 million shares, losing Rs0.33 to close at Rs28.32 and TPL Corporation with 14.6 million shares, gaining Rs0.42 to close at Rs5.86.

Foreign institutional investors were net buyers of Rs192.6 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.