Market watch: Profit-booking drags KSE-100 down
Benchmark index slips 6.63 points to settle at 34,401.42
Benchmark index slips 6.63 points to settle at 34,401.42. PHOTO: REUTERS
KARACHI:
Bulls retreated as the stock market slipped after two days of gains in a see-saw session on Wednesday ahead of the upcoming budget announcement for FY21 on June 12.
The market remained under the grip of fear of economic uncertainty, fuelled by the rupee’s persistent depreciation against the US dollar. The pessimism triggered selling pressure and market participants resorted to profit-booking.
Earlier, trading kicked off on a positive note, however, the sombre mood combined with the looming economic uncertainty prevented the market from posting any significant gains and the KSE-100 index closed just above the 34,400-point mark.
The bourse kept swinging between red and green zones and although it largely remained positive, the nervousness was very well noted in blue chips, which came under selling pressure.
However, the oil sector posted gains following a surge in international crude oil prices ahead of a meeting of the Organisation of the Petroleum Exporting Countries (OPEC) and allied producers on extending output cuts.
Furthermore, a 38% slump in cement sales in May year-on-year dented investors’ confidence towards the end of the session.
At close, the benchmark KSE-100 index recorded a decrease of 6.63 points, or 0.02%, to settle at 34,401.42.
Arif Habib Limited, in its report, stated that the market traded in a narrow range, gaining 250 points and giving up all the gains by the end of session, closing down by just 7 points.
The banking sector continued its ascent, although profit-booking was also witnessed. “However, the fertiliser sector fell back on news of no decision by the government on granting subsidy on fertiliser products, which brought down the sector’s stocks across the board,” the report said.
Meanwhile, pharmaceutical, cement and steel sectors largely remained in the red throughout the session.
The report added that the exploration and production sector benefited slightly from the increase in international crude oil prices, where Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL) recorded price gains.
The banking sector led the volumes again with trading in 20.4 million shares, followed by technology firms (18.6 million) and exploration and production companies (11.5 million).
Stocks that contributed positively to the index included Hubco (+22 points), Bank Alfalah (+15 points), Pakistan Oilfields (+13 points), PPL (+8 points) and Pakistan Tobacco (+8 points).
Stocks that contributed negatively were Engro (-20 points), HBL (-18 points), Dawood Hercules (-13 points), NBP (-13 points) and Adamjee Insurance (-9 points).
JS Global analyst Danish Ladhani said the benchmark KSE-100 index closed on a flat note at 34,401, shedding just seven points during the day. “The market remained lacklustre with investors’ interest seen in exploration and production and sideboard stocks,” he stated.
“PPL (+0.6%) and POL (+1.3%) in the exploration and production sector remained in the green zone as international crude oil prices rose ahead of an OPEC+ meeting on extending output cuts,” Ladhani added.
HBL (-1.1%) was the major laggard in the financial sector. DG Khan Cement (-0.7%), Lucky Cement (-0.6%), Maple Leaf Cement (-1.1%) and Cherat Cement (-0.6%) remained in the negative territory in the cement sector.
Engro (-1%), Fauji Fertiliser Company (-0.2%), HBL (-1.1%), Lucky Cement (-0.6%), Dawood Hercules (-1.5%) and Engro Fertilisers (-0.7%) were the index movers.
“Going forward, we expect the market to trade sideways and recommend investors to sell on strength ahead of the budget announcement,” the analyst said.
Overall, trading volumes decreased to 129.9 million shares compared with Tuesday’s tally of 221.7 million. The value of shares traded during the day was Rs6.8 billion.
Shares of 356 companies were traded. At the end of the day, 131 stocks closed higher, 202 declined and 23 remained unchanged.
TRG Pakistan was the volume leader with 7.8 million shares, gaining Rs0.12 to close at Rs28. It was followed by Pak Elektron with 7.4 million shares, gaining Rs0.19 to close at Rs24.34 and Pakistan Petroleum with 6.9 million shares, gaining Rs0.57 to close at Rs95.68.
Foreign institutional investors were net sellers of Rs240.9 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.
Bulls retreated as the stock market slipped after two days of gains in a see-saw session on Wednesday ahead of the upcoming budget announcement for FY21 on June 12.
The market remained under the grip of fear of economic uncertainty, fuelled by the rupee’s persistent depreciation against the US dollar. The pessimism triggered selling pressure and market participants resorted to profit-booking.
Earlier, trading kicked off on a positive note, however, the sombre mood combined with the looming economic uncertainty prevented the market from posting any significant gains and the KSE-100 index closed just above the 34,400-point mark.
The bourse kept swinging between red and green zones and although it largely remained positive, the nervousness was very well noted in blue chips, which came under selling pressure.
However, the oil sector posted gains following a surge in international crude oil prices ahead of a meeting of the Organisation of the Petroleum Exporting Countries (OPEC) and allied producers on extending output cuts.
Furthermore, a 38% slump in cement sales in May year-on-year dented investors’ confidence towards the end of the session.
At close, the benchmark KSE-100 index recorded a decrease of 6.63 points, or 0.02%, to settle at 34,401.42.
Arif Habib Limited, in its report, stated that the market traded in a narrow range, gaining 250 points and giving up all the gains by the end of session, closing down by just 7 points.
The banking sector continued its ascent, although profit-booking was also witnessed. “However, the fertiliser sector fell back on news of no decision by the government on granting subsidy on fertiliser products, which brought down the sector’s stocks across the board,” the report said.
Meanwhile, pharmaceutical, cement and steel sectors largely remained in the red throughout the session.
The report added that the exploration and production sector benefited slightly from the increase in international crude oil prices, where Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL) recorded price gains.
The banking sector led the volumes again with trading in 20.4 million shares, followed by technology firms (18.6 million) and exploration and production companies (11.5 million).
Stocks that contributed positively to the index included Hubco (+22 points), Bank Alfalah (+15 points), Pakistan Oilfields (+13 points), PPL (+8 points) and Pakistan Tobacco (+8 points).
Stocks that contributed negatively were Engro (-20 points), HBL (-18 points), Dawood Hercules (-13 points), NBP (-13 points) and Adamjee Insurance (-9 points).
JS Global analyst Danish Ladhani said the benchmark KSE-100 index closed on a flat note at 34,401, shedding just seven points during the day. “The market remained lacklustre with investors’ interest seen in exploration and production and sideboard stocks,” he stated.
“PPL (+0.6%) and POL (+1.3%) in the exploration and production sector remained in the green zone as international crude oil prices rose ahead of an OPEC+ meeting on extending output cuts,” Ladhani added.
HBL (-1.1%) was the major laggard in the financial sector. DG Khan Cement (-0.7%), Lucky Cement (-0.6%), Maple Leaf Cement (-1.1%) and Cherat Cement (-0.6%) remained in the negative territory in the cement sector.
Engro (-1%), Fauji Fertiliser Company (-0.2%), HBL (-1.1%), Lucky Cement (-0.6%), Dawood Hercules (-1.5%) and Engro Fertilisers (-0.7%) were the index movers.
“Going forward, we expect the market to trade sideways and recommend investors to sell on strength ahead of the budget announcement,” the analyst said.
Overall, trading volumes decreased to 129.9 million shares compared with Tuesday’s tally of 221.7 million. The value of shares traded during the day was Rs6.8 billion.
Shares of 356 companies were traded. At the end of the day, 131 stocks closed higher, 202 declined and 23 remained unchanged.
TRG Pakistan was the volume leader with 7.8 million shares, gaining Rs0.12 to close at Rs28. It was followed by Pak Elektron with 7.4 million shares, gaining Rs0.19 to close at Rs24.34 and Pakistan Petroleum with 6.9 million shares, gaining Rs0.57 to close at Rs95.68.
Foreign institutional investors were net sellers of Rs240.9 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.