KARACHI: Pakistan equities snapped a seven-day gaining streak with profit taking in the wider market, but were able to find resistance at the slightly lower level.
Tracking the performance of regional markets and foreign selling meant the index dipped below its highest peak on the third day of the week.
At close on Wednesday, the benchmark Karachi Stock Exchange (KSE)-100 index fell 208.86 points or 0.59% to close at 35,328.83.
Elixir Securities analyst Faisal Bilwani said Engro Corp (ENGRO -3%) led the declines on institutional selling, while cements also corrected on reported selling by foreigners.
“Locals tracked flows and booked gains as the market closed in the red without panic,” he said. “Domestic politics also kept investors anxious. However, most names witnessed support at lows with benchmark holding 35,300.
“The losses may not change the overall momentum, however, volatile trading may pull the index in a range of 700 to 800 points ahead of long Eid holidays.
Meanwhile, according to an analyst at Topline Securities, turmoil in China’s key share indices triggered major sell-off in Asian markets. As a result, fear of foreign selling affected trading activity of local investors.
Falling global crude prices, rising political noise and concerns for on-going protests against new tax levies on banking transactions of non-filers played a major role in the activity at the index.
Shares of 364 companies were traded on Wednesday. Of these, 138 companies closed higher, 208 fell and 18 remained unchanged.
Trading volumes decreased to 405 million compared to 442 million on Tuesday.
Jahangir Siddiqui and Company was the volume leader with 36.6 million shares gaining Rs0.84 to close at Rs31.02. It was followed by Byco Petroleum with 33.5 million shares, gaining Rs0.32 to close at Rs28.96 and Pakistan International Bulk Terminal with 30.7 million shares, gaining Rs1.17 to close at Rs42.10.
Foreign institutional investors were net sellers of Rs667 million worth of shares during the session, according to data compiled by the National Clearing Company of Pakistan.
Published in The Express Tribune, July 9th, 2015.
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