Market watch: KSE-100 falls over dented investor sentiment
Benchmark index decreases 75.69 points to close at 40,455.44
Benchmark index decreases 75.69 points to close at 40,455.44. PHOTO: REUTERS
KARACHI:
The stock market experienced range-bound trading on Thursday as the benchmark KSE-100 index oscillated between red and green zones before finally closing with a loss.
News that the Federal Board of Revenue (FBR) may impose the standard 17% sales tax on items that were currently subject to lower taxes, dented investor sentiment.
Earlier, trading began with a short-lived spike but weak investor sentiment, caused by speculation over ongoing talks with the International Monetary Fund (IMF), sparked uncertainty. It resulted in the index going up and down for the rest of the session.
The market extended its losses towards the end of the session in the wake of a selling spree.
At close, the benchmark KSE-100 index recorded a decrease of 75.69 points, or 0.19%, to settle at 40,455.44.
Arif Habib Limited, in its report, stated that the market opened on a positive note with +97 points but traded in a range of +256 points and -208 points. It closed the session down by 76 points.
"Selling activity built up throughout the session and was evident in oil and gas sector stocks and by the end of the session selling was seen in cement and banking sector shares as well," it said.
"Among cement sector stocks, DG Khan Cement and Maple Leaf Cement performed well with the former trading near its upper circuit."
However, profit-booking brought stocks down in general. The cement sector led the volumes with trading in 34.1 million shares, followed by banks (29.3 million) and vanaspati producers (22.4 million), the report added.
JS Global analyst Danish Ladhani said equities closed on a negative note with the benchmark KSE-100 index losing 76 points and closing at 40,455.
"The market remained lacklustre during the trading session with value buying seen ahead of the results season," he said.
"Furthermore, according to news reports, Pakistan and the International Monetary Fund (IMF) agreed that there would be no mini-budget or a reduction in the tax collection target till the end of FY20 but we did see some jitteriness in the second half as the cut-off yield of one-year T-bills increased 39 basis points."
In the financial sector, Faysal Bank (-5.9%) announced its CY19 results, reporting earnings per share of Rs3.96 vs Rs3.18 in the previous year with no cash payout.
Askari Bank (+3.6%) also announced CY19 consolidated earnings per share of Rs5.58 vs Rs3.51 in the previous year with dividend of Rs1.50 per share.
In the cement sector, DG Khan Cement (+4.5%) reported 1HFY20 consolidated loss of Rs2.16 per share whereas in Q1 it had earnings of Rs1.14 per share.
Pakistan Petroleum (-1.1%), Lucky Cement (-1.5%), MCB Bank (-0.3%), PSO (-1.5%), Engro (-0.1%), Oil and Gas Development Company (-0.8%) and Fauji Fertiliser (-0.2%) cumulatively contributed -80 points to the negative close of the index.
"Going forward, we expect the market to trade sideways in the short term on the back of uncertainty on the political front," the analyst concluded.
Overall, trading volumes increased to 197.4 million shares compared with Wednesday's tally of 180.3 million. The value of shares traded during the day was Rs7.1 billion.
Shares of 340 companies were traded. At the end of the day, 138 stocks closed higher, 177 declined and 25 remained unchanged.
Unity Foods was the volume leader with 22.4 million shares, gaining Rs0.73 to close at Rs13.29. It was followed by DG Khan Cement with 18.2 million shares, gaining Rs3.01 to close at Rs69.62 and The Bank of Punjab with 13.8 million shares, losing Rs0.12 to close at Rs13.01.
Foreign institutional investors were net sellers of Rs568.22 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.
The stock market experienced range-bound trading on Thursday as the benchmark KSE-100 index oscillated between red and green zones before finally closing with a loss.
News that the Federal Board of Revenue (FBR) may impose the standard 17% sales tax on items that were currently subject to lower taxes, dented investor sentiment.
Earlier, trading began with a short-lived spike but weak investor sentiment, caused by speculation over ongoing talks with the International Monetary Fund (IMF), sparked uncertainty. It resulted in the index going up and down for the rest of the session.
The market extended its losses towards the end of the session in the wake of a selling spree.
At close, the benchmark KSE-100 index recorded a decrease of 75.69 points, or 0.19%, to settle at 40,455.44.
Arif Habib Limited, in its report, stated that the market opened on a positive note with +97 points but traded in a range of +256 points and -208 points. It closed the session down by 76 points.
"Selling activity built up throughout the session and was evident in oil and gas sector stocks and by the end of the session selling was seen in cement and banking sector shares as well," it said.
"Among cement sector stocks, DG Khan Cement and Maple Leaf Cement performed well with the former trading near its upper circuit."
However, profit-booking brought stocks down in general. The cement sector led the volumes with trading in 34.1 million shares, followed by banks (29.3 million) and vanaspati producers (22.4 million), the report added.
JS Global analyst Danish Ladhani said equities closed on a negative note with the benchmark KSE-100 index losing 76 points and closing at 40,455.
"The market remained lacklustre during the trading session with value buying seen ahead of the results season," he said.
"Furthermore, according to news reports, Pakistan and the International Monetary Fund (IMF) agreed that there would be no mini-budget or a reduction in the tax collection target till the end of FY20 but we did see some jitteriness in the second half as the cut-off yield of one-year T-bills increased 39 basis points."
In the financial sector, Faysal Bank (-5.9%) announced its CY19 results, reporting earnings per share of Rs3.96 vs Rs3.18 in the previous year with no cash payout.
Askari Bank (+3.6%) also announced CY19 consolidated earnings per share of Rs5.58 vs Rs3.51 in the previous year with dividend of Rs1.50 per share.
In the cement sector, DG Khan Cement (+4.5%) reported 1HFY20 consolidated loss of Rs2.16 per share whereas in Q1 it had earnings of Rs1.14 per share.
Pakistan Petroleum (-1.1%), Lucky Cement (-1.5%), MCB Bank (-0.3%), PSO (-1.5%), Engro (-0.1%), Oil and Gas Development Company (-0.8%) and Fauji Fertiliser (-0.2%) cumulatively contributed -80 points to the negative close of the index.
"Going forward, we expect the market to trade sideways in the short term on the back of uncertainty on the political front," the analyst concluded.
Overall, trading volumes increased to 197.4 million shares compared with Wednesday's tally of 180.3 million. The value of shares traded during the day was Rs7.1 billion.
Shares of 340 companies were traded. At the end of the day, 138 stocks closed higher, 177 declined and 25 remained unchanged.
Unity Foods was the volume leader with 22.4 million shares, gaining Rs0.73 to close at Rs13.29. It was followed by DG Khan Cement with 18.2 million shares, gaining Rs3.01 to close at Rs69.62 and The Bank of Punjab with 13.8 million shares, losing Rs0.12 to close at Rs13.01.
Foreign institutional investors were net sellers of Rs568.22 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.