Market watch: KSE-100 retreats as investors book profits

Benchmark index slips 136.43 points to settle at 40,029.69

KARACHI:

Stocks snapped a two-day winning streak as range-bound trading and profit-taking by investors dragged the index in the red on the last trading day of the week.

The KSE-100 index kicked off on a positive note, nearly touching the 40,500-point mark before the mid-day break. However, the trend changed dramatically and the KSE-100 plunged into negative as soon as trading resumed in the second half.

Selling pressure was seen in stocks across the board, particularly in oil stocks as international oil prices slipped on uncertainty over fuel demand. Despite the overall volatility, buying in the last hour helped recoup some losses but the index finished lower.

At close, the benchmark KSE-100 index recorded a decrease of 136.43 points, or 0.34%, to settle at 40,029.69 points.

Arif Habib Limited, in its report, stated selling activity was observed across the board, and mainly contributed by banks, exploration and production and cement sectors, it said.

Sectors contributing to the performance include banks (down 68 points), exploration and production (43 points), cement (30 points), power (30 points) and fertiliser (21 points).

Individually stocks that contributed positively to the index include MEBL (up 21 points), PIBTL (16 points), KTML (15 points), IGIHL (13 points) and PSMC (9 points). On the other hand, stocks that contributed negatively include UBL (down 40 points), HBL (33 points), HUBC (26 points), MCB (17 points) and POL (15 points).

Overall, trading volumes plunged to 728.8 million shares compared with Thursday's tally of 826.8 million. The value of shares traded during the day was Rs23 billion.

Shares of 402 companies were traded. At the end of the day, 197 stocks closed higher, 188 declined and 17 remained unchanged.

WorldCall Telecom was the volume leader with 144.4 million shares, gaining Rs0.05 to close at Rs1.48. It was followed by Pakistan International Bulk Terminal with 52.6 million shares, gaining Rs0.80 to close at Rs12.17 and Unity Foods with 50.4 million shares, gaining Re1 to close at Rs13.24.

Foreign institutional investors were net sellers of Rs169.5 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.