Market watch: KSE-100 ends slightly lower in turbulent session

Benchmark index sheds 47.10 points to settle at 46,674.77

KARACHI:

The Pakistan Stock Exchange experienced a turbulent session on Tuesday as the benchmark KSE-100 index succumbed to selling pressure and closed slightly lower despite a handful of positive triggers.

Though buying activity was witnessed for most part of the trading session, market participants failed to sustain the uptrend and as a result, the KSE-100 index recorded a dip in final hours.

Oil and refinery sectors drove the uptrend on the back of a continued uptick in global oil prices coupled with likely finalisation of an oil marketing policy by the government.

Progress on a deal to disburse payments to the independent power producers (IPPs) kept energy stocks in the limelight and added fuel to the uptrend.

In the morning, trading began with a spike and the market climbed close to 47,000 points in initial dealings. The KSE-100 continued to advance for a modest time period and it turned volatile later in the day, which eroded all gains and dragged the market down.

At close, the benchmark KSE-100 index recorded a decrease of 47.10 points, or 0.1%, to settle at 46,674.77 points.

Arif Habib Limited, in its report, stated that anticipation of better quarterly results as well as continued increase in international crude oil prices boosted investor confidence, who took new positions in oil and gas marketing, exploration and production and refinery sectors.

Banking sector stocks remained under selling pressure following the downtrend in recent sessions. Power and refinery sectors performed well on expectations of finalisation of an oil marketing companies’ policy by the government, the report said.

JS Global analyst Danish Ladhani said that the KSE-100 index remained volatile amid firm resistance at 47,000 points.

The market touched a high and low of +269 and -93 points respectively and closed at 46,674, down 47 points.

A total of 664 million shares were traded where major contributors were Telecard Limited (+20%), Pakistan Refinery (+1.8%), Hascol Petroleum (+4.9%), TRG Pakistan (+0.9%) and Pakistan International Bulk Terminal (-0.5%).

The exploration and production sector gained ground as crude oil traded at higher levels in the international market. Mari Petroleum (+1%), Oil and Gas Development Company (+0.5%), Pakistan Oilfields (+1.8%) and Pakistan Petroleum (+0.3%) closed in the green.

On the news front, a cabinet body approved payment of Rs403 billion to 46 independent power producers (IPPs). Consequently, stocks of Kapco (+3.1%) and Hubco (+0.3%) moved higher.

Moreover, investor interest was seen in refineries as Pakistan Refinery (+1.8%), Byco (+3.4%), Attock Refinery (+6.6%) and National Refinery (+3.9%) closed in the positive zone.

 “It is recommended to investors to avail any upside as a selling opportunity as the index has ceased its voyage across 47,000,” the analyst said.

Overall, trading volumes rose to 664 million shares compared with Monday’s tally of 428.6 million. The value of shares traded during the day was Rs28.4 billion.

Shares of 420 companies were traded. At the end of the day, 191 stocks closed higher, 212 declined and 17 remained unchanged.

Telecard Limited was the volume leader with 62.9 million shares, gaining Re1 to close at Rs5.89. It was followed by Pakistan Refinery with 43.2 million shares, gaining Rs0.51 to close at Rs29.03 and Hascol Petroleum with 39.8 million shares, gaining Rs0.55 to close at Rs11.77.

Foreign institutional investors were net sellers of Rs268.5 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.