Market watch: KSE-100 loses more ground as Moody's report weighs

Benchmark index decreases 103.70 points to settle at 37,983.62

KARACHI: The stock market experienced a rather muted session on Friday amid concern over Moody's report that termed Financial Action Task Force's review of Pakistan credit negative for the country's banks.

Market participants also remained cautious over reports about likely delay in the privatisation of state-owned enterprises and dismal corporate earnings in cement, banking, oil and gas exploration sectors.

Moreover, a plunge in global crude oil prices for the fifth day on Thursday to their lowest in a year stopped investors from accumulating stocks with selling pressure weighing on sentiment.

At close, the benchmark KSE-100 index recorded a decrease of 103.70 points, or 0.27%, to settle at 37,983.62.

Arif Habib Limited, in its report, stated that the market continued to run on the recovery path after a remarkable comeback from the meltdown a day ago. However, the index went up 220 points and registered a decline of 329 points during the day. It closed the session in the red.

"Cement and steel sectors were the outperformers, with further price gains following Thursday's performance," it said.

"The banking sector generally faced selling pressure with National Bank of Pakistan (NBP) dipping to its lower circuit, whereas The Bank of Punjab (BOP) could post only a nominal rise.

"A continued slide in international crude prices kept exploration and production, oil marketing and refinery sectors under pressure."

Stocks that contributed significantly to the volumes included Hascol Petroleum, Maple Leaf Cement, Unity Foods, The Bank of Punjab and DG Khan Cement, which accounted for 36% of the total volumes.

Stocks that contributed positively were Engro (+39 points), Lucky Cement (+34 points), Meezan Bank (+29 points), Fauji Fertiliser Company (+18 points) and Searl (+17 points).

Stocks that contributed negatively included HBL (-46 points), Pakistan Petroleum Limited (-45 points), OGDC (-41 points), MCB Bank (-35 points) and Pakistan Oilfields (-31 points).

Overall, trading volumes decreased to 202.2 million shares compared with Thursday's tally of 249.2 million. The value of shares traded during the day was Rs8.6 billion.

Shares of 358 companies were traded. At the end of the day, 173 stocks closed higher, 161 declined and 24 remained unchanged.

Hascol Petroleum was the volume leader with 18.5 million shares, losing Rs0.53 to close at Rs18.83. It was followed by Maple Leaf Cement with 17.6 million shares, gaining Rs0.66 to close at Rs24.39 and Unity Foods with 14 million shares, increasing Rs0.03 to close at Rs12.98.

Foreign institutional investors were net sellers of Rs952.1 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.