Market watch: KSE-100 retreats as investors book profit

Benchmark index decreases 92.87 points to settle at 40,481.65

KARACHI: The stock market endured a rather muted session on Thursday as investors awaited the outcome of Financial Action Task Force's (FATF) review of Pakistan, which would determine the country's fate.

Market participants also remained cautious over foreign capital outflow, fiscal risks and prevailing economic uncertainty, and opted to remain on the sidelines.

The benchmark KSE-100 index kicked off trading on a positive note, however, the bull-run could not be sustained and the index retreated into the red zone. Trading remained choppy with the index oscillating between red and green zones but after midday the trend remained negative.

At close, the benchmark KSE-100 index recorded a decrease of 92.87 points, or 0.23%, to settle at 40,481.65.

Aba Ali Habib Securities, in its report, stated that the bourse could not sustain Wednesday's bull-run and experienced a dull trading session, ending the day on a negative note.

The market lost ground on account of profit-taking as investors stood on the sidelines and awaited the outcome of FATF meeting, which was expected to be unveiled over the weekend.

"We believe hopes are high that Pakistan will avoid blacklisting and may remain in the grey list. Going forward, the corporate result season will drive investor sentiment," it said.

"As per news sources, the UAE regulator was investigating a Pakistani bank which sparked pressure in the banking sector."

JS Global analyst Maaz Mulla said Pakistan Stock Exchange moved in both directions, touching intra-day high of 122 points and low of 129 points.

"This range-bound activity through most of the trading session can be attributed to a lack of triggers, which drove the market in both directions," he said.

The General Tyre and Rubber Company (-2.8%) declared its 1HFY20 result, where the company posted earnings per share of Rs0.24 with no cash dividend.

Traded value for the day stood very low at $30 million, down 27% and volumes came in at 112 million shares, down 22%.

"Going forward, we expect the market to trade sideways in the short term," he added.

Overall, trading volumes dipped to 112.1 million shares compared with Wednesday's tally of 143 million. The value of shares traded during the day was Rs4.7 billion.

Shares of 330 companies were traded. At the end of the day, 129 stocks closed higher, 183 declined and 18 remained unchanged.

Hascol Petroleum was the volume leader with 8.8 million shares, losing Rs0.66 to close at Rs22.47. It was followed by The Bank of Punjab with 8.7 million shares, gaining Rs0.28 to close at Rs13.24 and DG Khan Cement with 8.1 million shares, losing Rs1.17 to close at Rs68.29.

Foreign institutional investors were net sellers of Rs208.7 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.