Market watch: KSE-100 fails to sustain gains, ends in red

Benchmark index falls 264.57 points to settle at 33,728.18

KARACHI: The stock market on Wednesday once again plunged into negative territory due to poor trade data published by Pakistan Bureau of Statistics, according to which country’s exports slipped below $1 billion in April.

In the morning, trading began on a positive note, but the bourse could not sustain the bullish momentum and registered losses by midday.

Moreover, concern over Morgan Stanley Capital International (MSCI)’s review, due on May 12, further dented investor confidence and sparked selling, which dragged the market deep into the red zone.

At close, the benchmark KSE-100 index recorded a decrease of 264.57 points, or 0.78%, to settle at 33,728.18.

Arif Habib Limited, in its report, said the market opened on a positive note with +114 points but could not sustain selling pressure, which pulled the index down into negative territory and it recorded a decline of 317 points.

The index made some recovery by the end of trading session but closed with a loss of 264 points.

“Banking, cement and exploration and production stocks weathered the selling pressure regardless of movements in international crude oil prices,” it said.

Meanwhile, fertiliser stocks traded no different than the rest of the stocks and registered a decline in their values.

The report added that among banks, HBL saw low prices due to MSCI rebalancing and concern among investors about a possible exit.

Technology stocks managed to post the highest volumes with trading in 28.9 million shares, followed by oil and gas marketing companies (28.2 million) and cement firms (24.1 million).

Stocks that contributed positively to the index included Nestle (+9 points), TRG Pakistan (+8 points), Bank Alfalah (+6 points), Shell (+6 points) and Azgard Nine (+6 points).

Meanwhile, stocks that contributed negatively were MCB Bank (-56 points), HBL (-42 points), Hubco (-36 points), Lucky Cement (-24 points) and Fauji Fertiliser Company (-18 points).

JS Global analyst Maaz Mulla said profit-booking was witnessed at the bourse as the KSE-100 index largely remained in the red zone. The index hit an intra-day high of +127 points and intra-day low of -317 points to close at 33,728.

“On the news front, the cabinet deliberated on a proposal about easing lockdown from May 9. However, a final decision in this regard will be taken in the National Command and Operation Centre meeting today (Wednesday),” he said.

Furthermore, pressure continued in the cement sector as investors opted to book profit. Cherat Cement (-4.1%), Pioneer Cement (-2.7%), DG Khan Cement (-1.9%), Maple Leaf Cement (-1.7%) and Kohat Cement (-1.8%) were the major losers.

After two consecutive days of upward trend in the exploration and production sector, investors resorted to profit-booking. Consequently, Pakistan Petroleum (-0.7%), OGDC (-0.7%) and Pakistan Oilfields (-1.6%) closed lower.

“Going forward, we expect the market to remain under pressure and recommend investors to sell on strength and wait for further dip,” the analyst said.

Overall, trading volumes decreased to 208.9 million shares compared with Tuesday’s tally of 261.3 million. The value of shares traded during the day was Rs7.2 billion.

Shares of 350 companies were traded. At the end of the day, 158 stocks closed higher, 163 declined and 29 remained unchanged.

Hascol Petroleum was the volume leader with 23.8 million shares, gaining Rs0.04 to close at Rs15.66. It was followed by Unity Foods with 20.5 million shares, gaining Rs0.09 to close at Rs12.71 and TRG Pakistan with 14.5 million shares, gaining Rs0.79 to close at Rs19.78.

Foreign institutional investors were net sellers of Rs501.02 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.

The stock market on Wednesday once again plunged into negative territory due to poor trade data published by Pakistan Bureau of Statistics, according to which country’s exports slipped below $1 billion in April.

In the morning, trading began on a positive note, but the bourse could not sustain the bullish momentum and registered losses by midday.

Moreover, concern over Morgan Stanley Capital International (MSCI)’s review, due on May 12, further dented investor confidence and sparked selling, which dragged the market deep into the red zone.

At close, the benchmark KSE-100 index recorded a decrease of 264.57 points, or 0.78%, to settle at 33,728.18.

Arif Habib Limited, in its report, said the market opened on a positive note with +114 points but could not sustain selling pressure, which pulled the index down into negative territory and it recorded a decline of 317 points.

The index made some recovery by the end of trading session but closed with a loss of 264 points.

“Banking, cement and exploration and production stocks weathered the selling pressure regardless of movements in international crude oil prices,” it said.

Meanwhile, fertiliser stocks traded no different than the rest of the stocks and registered a decline in their values.

The report added that among banks, HBL saw low prices due to MSCI rebalancing and concern among investors about a possible exit.

Technology stocks managed to post the highest volumes with trading in 28.9 million shares, followed by oil and gas marketing companies (28.2 million) and cement firms (24.1 million).

Stocks that contributed positively to the index included Nestle (+9 points), TRG Pakistan (+8 points), Bank Alfalah (+6 points), Shell (+6 points) and Azgard Nine (+6 points).

Meanwhile, stocks that contributed negatively were MCB Bank (-56 points), HBL (-42 points), Hubco (-36 points), Lucky Cement (-24 points) and Fauji Fertiliser Company (-18 points).

JS Global analyst Maaz Mulla said profit-booking was witnessed at the bourse as the KSE-100 index largely remained in the red zone. The index hit an intra-day high of +127 points and intra-day low of -317 points to close at 33,728.

“On the news front, the cabinet deliberated on a proposal about easing lockdown from May 9. However, a final decision in this regard will be taken in the National Command and Operation Centre meeting today (Wednesday),” he said.

Furthermore, pressure continued in the cement sector as investors opted to book profit. Cherat Cement (-4.1%), Pioneer Cement (-2.7%), DG Khan Cement (-1.9%), Maple Leaf Cement (-1.7%) and Kohat Cement (-1.8%) were the major losers.

After two consecutive days of upward trend in the exploration and production sector, investors resorted to profit-booking. Consequently, Pakistan Petroleum (-0.7%), OGDC (-0.7%) and Pakistan Oilfields (-1.6%) closed lower.

“Going forward, we expect the market to remain under pressure and recommend investors to sell on strength and wait for further dip,” the analyst said.

Overall, trading volumes decreased to 208.9 million shares compared with Tuesday’s tally of 261.3 million. The value of shares traded during the day was Rs7.2 billion.

Shares of 350 companies were traded. At the end of the day, 158 stocks closed higher, 163 declined and 29 remained unchanged.

Hascol Petroleum was the volume leader with 23.8 million shares, gaining Rs0.04 to close at Rs15.66. It was followed by Unity Foods with 20.5 million shares, gaining Rs0.09 to close at Rs12.71 and TRG Pakistan with 14.5 million shares, gaining Rs0.79 to close at Rs19.78.

Foreign institutional investors were net sellers of Rs501.02 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.