Benchmark KSE 100-share index decreases 270.17 points.
Excitement over the increase in gas tariffs and global crude prices recovery was short-lived as the Karachi Stock Exchange (KSE)-100 Index touched 34,912 points before sliding down over profit-taking.
The market ignored foreign buying and seemed like taking a breather with uncertainty continuing to prevail. Losses in regional markets and higher than consensus inflation announced near the day’s close meant the wider market did not get excited.
At close on Tuesday, the benchmark 100-share index recorded a fall of 0.78% or 270.17 points to end at 34,456.34.
Elixir Securities analyst Faisal Bilwani said oil stocks opened up but were met with institutional selling, while Pakistan State Oil, (PSO PA -3.5%) that announced below estimate FY15, ended near a 52 week low.
“Overall, investors were cautious after the government increased gas tariff that will see a marginal negative impact on textiles and cements, while fertilisers that see most margin contraction have reportedly increased urea prices to mitigate the dent,” he added.
“Cements traded volatile and hunted for direction while Fauji Cement (FCCL PA -1%) was red at close despite announcing better-than-expected earnings as outlook on cement sector remains uncertain.
“Any increase in noise from domestic politics will hurt sentiment, in absence of major news and as earnings season more or less comes to a close,” Bilwani commented further.
Meanwhile, JS Global analyst Ahmed Saeed Khan was of the view that volatility prevailed as the index juggled 577 points between red and green to finally close down 0.78%, with volumes of 354 million shares.
“Major laggards of the fertiliser sector were FFBL (-4.43%) and FFC (-3.1%) while gas utilities, SSGC and SNGP, closed at their respective upper limits,” said Khan.
Trade volumes fell to 354 million shares compared with Monday’s tally of 358 million shares.
Shares of 371 companies were traded on Tuesday. At the end of the day, 106 stocks closed higher, 247 declined and 18 remained unchanged. The value of shares traded during the day was Rs16.8 billion.
Dewan Cement was the volume leader with 43.6 million shares, gaining Rs0.59 to finish at Rs17.81. It was followed by Sui Northern Gas Limited with 15.3 million shares, gaining Rs1.65 to close at Rs34.65 and Pace Pakistan Limited with 13.5 million shares, losing Rs0.37 to close at Rs7.38.
Foreign institutional investors were net buyers of Rs129 billion worth of shares during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, September 2nd, 2015.
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