KARACHI: Reports of institutional selling meant the index was unable to sustain its ride in the positive for more than a day, as the stock market ended another day negative. Stock market stumble as foreign selling streak continues despite positive signs.
After a positive start, reports of foreign selling, which sparked the tumble on Monday as well, subdued sentiments with the index dropping sharply after breaching the 34,000-point barrier. The fall continued till the end before bulls arrested the decline.
At close on Wednesday, the Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.77% or 261.38 points to end at 33,537.42.
Elixir Securities Analyst Faisal Bilwani said Pakistan equities ended negative as morning gains gave into reported institutional selling, primarily in index heavy names.
“Oil stocks attracted fresh liquidity as exploration and production churned encouraging volumes with Oil and Gas Development Company (-1.5%) trading highest volumes this calendar year, announcing the fiscal year 15 earnings,” said Bilwani.
“Engro Corporation (-2.6%) dented sentiment and traded volatile to settle lower on reports of foreign funds selling while cements were mostly down, in line with wider market direction. Although flows were the primary focus, locals also followed developments on the political front as the election tribunal was due to decide on rigging allegation case.”
Commenting on days ahead, Bilwani added the benchmark-100 index could find support near the 33,500 level. “We expect a volatile market in the days ahead with regional markets and commodities setting the tone, while concerns over foreign selling will keep an upside in index names in check. Politics will also gain limelight in the days ahead as election probe tops headlines.”
Meanwhile, JS Global’s Ahmed Saeed Khan said the roller-coaster ride continued for the index. “The index juggled between the red and green, hitting +0.66% at its highest point but closed -0.77%,” said Khan. “Positivity initially came in from the local side as some buying continued from local mutual funds, however foreigners continued their selling for a straight tenth session.
“Slight recovery in international crude oil prices served as a positive trigger for a handful oil and gas scrips. Gainers in the sector were Hascol Petroleum Limited (+3.2%), Attock Petroleum Limited (+0.57%) and National Refinery Limited (+1.07%). Moving forward we expect the volatility to persist.”
Traded volumes fell to 278.69 million shares compared with Tuesday’s tally of 395.40 million shares.
Shares of 384 companies were traded on Wednesday. At the end of the day, 140 stocks closed higher, 225 declined while 19 remained unchanged. The value of shares traded during the day was Rs12.4 billion.
K-Electric Limited was the volume leader with 15.9 million shares, losing Rs0.24 to finish at Rs7.64. It was followed by Dewan Cement with 15.4 million shares, gaining Rs0.20 to close at Rs14.90 and Jahangir Siddiqui Company with 13.8 million shares, losing Rs1.10 to close at Rs23.65.
Foreign institutional investors were net sellers of Rs779 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, August 27th, 2015.
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