Market Watch : Market undergoes technical correction yet again

Benchmark KSE-100 index loses 105 points.

KARACHI: The stock market saw yet another day of technical adjustment on Thursday, as the market corrected after significant gains in recent days and investors opted to book profits. The International Clearing House made its way back in investors’ speculations, and Pakistan Telecommunication Company (PTCL) once again registered the most volumes for the session.

“Across the board selling pressure was witnessed, led mainly by index heavyweight oil stocks – especially Pakistan Oilfields,” said Topline Securities equity dealer Samar Iqbal.

“Furthermore, the unclear political scenario, coupled with a lack of developments on the economic front, also induced investors to book profits,” she added.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index plunged 0.69% or 104.86 points to end at the 15,188.53 points level.

Trade volumes improved to 181 million shares compared with Wednesday’s tally of 172 million shares. The value of shares traded during the day was Rs5.26 billion.

Shares of 357 companies were traded on Thursday. At the end of the day 110 stocks closed higher, 193 declined while 54 remained unchanged.

“Major battering was seen in the oil and gas sector, with major oil scrips coming under heavy selling pressure and Pakistan Oilfields and the Oil and Gas Development Company losing 2.1% and 1.0% respectively,” added JS Global analyst Shakir Padela. “PTCL ended the day on the upper circuit, as positive earnings from the creation of an international clearing house kept the scrip in the limelight. Major Attock group results coming up with [the] DG Khan Cement [result] should provide the market some support in case of high cash and bonus issues with the result,” he added.

Pakistan Telecommunication Company was the volume leader with 28.58 million shares gaining Rs0.96 to finish at Rs19.57. It was followed by Karachi Electric Supply Corporation with 17.66 million shares gaining Rs0.24 to close at Rs6.49 and WorldCall Telecom with 11.24 million shares gaining Rs0.26 to close at Rs3.04.

Foreign institutional investors were buyers of Rs222.86 million and sellers of Rs344.05 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, September 7^th, 2012.