Market watch: KSE-100 remains in red for 4th successive session

Benchmark index decreases 54.33 points to settle at 42,506.94

KARACHI: The stock market retracted again on Thursday as the benchmark KSE-100 index shed 54 points in a range-bound session and recorded its fourth consecutive decline.

Overall, a lack of substantial positive triggers restricted the market from making any gains.

Earlier, trading began on a positive note, mainly fuelled by investor interest in the oil sector. However, it proved to be short-lived and following a plunge in international oil prices, the market retreated. The bourse traded in a range of -122 and +345 points.

At close, the benchmark KSE 100-share Index recorded a decrease of 54.33 points, or 0.13%, to settle at 42,506.94.

JS Global analyst Maaz Mulla said the day started on a strong note as the market touched an intra-day high of 344 points. However, the index came under pressure and hit an intra-day low of 122 points to close at 42,507, down 54 points.

“Heavy participation was witnessed in the cement sector on anticipation of increase in prices of cement bags,” he said.

Pioneer Cement (+1.6%), Cherat Cement (+2%) and Maple Leaf Cement (+3%) were major movers of the sector and managed to advance.

Moreover, the banking and exploration and production sectors remained slightly higher than the previous day’s close. HBL (+0.9%), Bank Alfalah (+0.8%), NBP (+0.2%), MCB Bank (+0.2%), Pakistan Petroleum (+0.1%) and Pakistan Oilfields (+0.1%) all closed in the green zone, the analyst added.

“Moving ahead, we expect the market to remain positive in the medium term. However, it may continue its consolidation phase,” said Mulla.

A report of Arif Habib Limited stated that Oil and Gas Development Company (OGDC), which rebounded from Wednesday’s lower circuit, again ended lower.

“A decline in international crude prices pushed investors to stay cautious in the oil and gas chain and therefore stocks of oil marketing companies and refineries faced selling pressure,” stated the report.

Aba Ali Habib Securities, in its report, stated that despite positive news flow from the Financial Action Task Force’s (FATF) group meeting in Beijing, political uncertainty intensified as the prime minister constituted a high-level committee to probe the wheat crisis after stern criticism by the opposition parties.

Overall, trading volumes increased to 230.8 million shares compared with Wednesday’s tally of 177.98 million. The value of shares traded during the day was Rs9.8 billion.

Shares of 368 companies were traded. At the end of the day, 154 stocks closed higher, 190 declined and 24 remained unchanged.

Maple Leaf Cement was the volume leader with 27.58 million shares, gaining Rs0.67 to close at Rs22.92. It was followed by WorldCall Telecom with 16.5 million shares, losing Rs0.03 to close at Rs1.20 and Fauji Cement with 13.6 million shares, gaining Rs0.09 to close at Rs16.6.

Foreign institutional investors were net buyers of Rs29.69 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.