Market watch: KSE-100 continues to retreat as volumes remain low
Benchmark index decreases 65.20 points to settle at 42,561.27
Benchmark index decreases 65.20 points to settle at 42,561.27. PHOTO: AFP
KARACHI:
Stocks maintained the downtrend for the third successive session on Wednesday amid thin trade due to pressure on dismal financial results in cement sector and oil refineries.
Following a brief open in the green, the KSE-100 index plunged over 400 points in intra-day trading as lack of positive triggers restricted the market from making any gains. However, a buying spree in the later hours of the day helped the index eliminate some of the losses.
Selling pressure in oil and gas exploration companies particularly due to activity in Oil and Gas Development Company also impacted the session.
"OGDC was going towards the lower circuit and then bounced back strongly to close at day's rate and above market average," stated an AHL Research. Investors remained concerned over the likely selection of financial advisers for divestment of OGDC's shares amidst expectation that shares will be offered at a discount to market price, it added.
At close, the benchmark KSE 100-share Index recorded a decrease of 65.20 points, or 0.15%, to settle at 42,561.27.
JS Global analyst Maaz Mulla said that the local bourse remained volatile, where the KSE-100 index juggled between green and red, making an intraday high of 49 points and a low of 483 points to close at 42,561 levels.
"OGDC (-3.4%) led the volume with 19 million shares changing hands on back of rumours that there are talks that one local broker along with one foreign broker dealer is appointed by the government for secondary offering of OGDC," he added.
The government is likely to offload 10% stake and price mechanism is likely to be six months average price.
"Moreover Financial Action Task Force's (FATF) Working Group has expressed satisfaction on the progress report submitted by Pakistan, comprising its performance from October 2019 till January 2020 in compliance with the watchdog's 27-point action plan to curb money laundering."
Major movers of the day were LUCK (+3.1%), FFC (+1.3%), ENGRO (+0.7%), MCB (+0.9%), OGDC (-3.4%), DAWH (-1.4%), PSO (-1.2%) and POL (-0.9%) that drove the market in both directions.
Investor's interest was witnessed in the cement sector, where LUCK (+3.1%), PIOC (+2.8%), KOHC (+2.9%), MLCF (+2.0%) and CHCC (+2.5%) all closed in the green trajectory.
"Moving ahead, we expect the market to remain positive in the medium-term. However, profit taking cannot be ruled out in the short-term," the analyst added.
Overall, trading volumes inched up to 177.98 million shares compared with Tuesday's tally of 177.56 million. The value of shares traded during the day was Rs9.3 billion.
Shares of 352 companies were traded. At the end of the day, 139 stocks closed higher, 189 declined and 24 remained unchanged.
Oil and Gas Development Company was the volume leader with 19.2 million shares, losing Rs5.02 to close at Rs143.89. It was followed by Maple Leaf Cement with 9.02 million shares, gaining Rs0.44 to close at Rs22.25 and Unity Foods with 8.5 million shares, losing Rs0.59 to close at Rs14.51.
Foreign institutional investors were net sellers of Rs207.4 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.
Stocks maintained the downtrend for the third successive session on Wednesday amid thin trade due to pressure on dismal financial results in cement sector and oil refineries.
Following a brief open in the green, the KSE-100 index plunged over 400 points in intra-day trading as lack of positive triggers restricted the market from making any gains. However, a buying spree in the later hours of the day helped the index eliminate some of the losses.
Selling pressure in oil and gas exploration companies particularly due to activity in Oil and Gas Development Company also impacted the session.
"OGDC was going towards the lower circuit and then bounced back strongly to close at day's rate and above market average," stated an AHL Research. Investors remained concerned over the likely selection of financial advisers for divestment of OGDC's shares amidst expectation that shares will be offered at a discount to market price, it added.
At close, the benchmark KSE 100-share Index recorded a decrease of 65.20 points, or 0.15%, to settle at 42,561.27.
JS Global analyst Maaz Mulla said that the local bourse remained volatile, where the KSE-100 index juggled between green and red, making an intraday high of 49 points and a low of 483 points to close at 42,561 levels.
"OGDC (-3.4%) led the volume with 19 million shares changing hands on back of rumours that there are talks that one local broker along with one foreign broker dealer is appointed by the government for secondary offering of OGDC," he added.
The government is likely to offload 10% stake and price mechanism is likely to be six months average price.
"Moreover Financial Action Task Force's (FATF) Working Group has expressed satisfaction on the progress report submitted by Pakistan, comprising its performance from October 2019 till January 2020 in compliance with the watchdog's 27-point action plan to curb money laundering."
Major movers of the day were LUCK (+3.1%), FFC (+1.3%), ENGRO (+0.7%), MCB (+0.9%), OGDC (-3.4%), DAWH (-1.4%), PSO (-1.2%) and POL (-0.9%) that drove the market in both directions.
Investor's interest was witnessed in the cement sector, where LUCK (+3.1%), PIOC (+2.8%), KOHC (+2.9%), MLCF (+2.0%) and CHCC (+2.5%) all closed in the green trajectory.
"Moving ahead, we expect the market to remain positive in the medium-term. However, profit taking cannot be ruled out in the short-term," the analyst added.
Overall, trading volumes inched up to 177.98 million shares compared with Tuesday's tally of 177.56 million. The value of shares traded during the day was Rs9.3 billion.
Shares of 352 companies were traded. At the end of the day, 139 stocks closed higher, 189 declined and 24 remained unchanged.
Oil and Gas Development Company was the volume leader with 19.2 million shares, losing Rs5.02 to close at Rs143.89. It was followed by Maple Leaf Cement with 9.02 million shares, gaining Rs0.44 to close at Rs22.25 and Unity Foods with 8.5 million shares, losing Rs0.59 to close at Rs14.51.
Foreign institutional investors were net sellers of Rs207.4 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.