Benchmark
KSE-100 index
falls 147 points.
The day’s start the index plunge close to 34,100 before attractive valuations pulled the index up, but it was not enough as oil stocks proved to the slippery slope.
At close on Wednesday, the Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.43% or 146.58 points to end at 34,309.76.
Elixir Securities analyst Faisal Bilwani said Pakistan equities closed negative after range-bound trading with turnover dropping to a two-week low.
“Oils were a major drag with exploration and production stocks opening gap down after declines in global crude while support was limited as investors remained wary of volatility.
“As expected, fertilisers bounced to cover some of the losses on increase in urea prices and yield hunters took advantage of the weakness, while cements failed to attract attention. Activity in the wider market was lacklustre in absence of any major news or trigger as participants await clarity on foreign flows while domestic politics also remains a dampener.”
Meanwhile, JS Global analyst Ahmed Saeed Khan said the oil sector remained under pressure. “Due to dip in international crude oil prices, the oil sector witnessed pressure throughout the day,” said Khan. “Biggest losers of the sector were Oil and Gas Development Company Limited (-2.3%) and Pakistan Petroleum Limited (-3.0%). After the news of Fauji Fertilizer Company passing on the entire impact of gas tariff hike, sector remained upbeat and was the major support in the market.
“Biggest gainers of the sector were Fatima Fertilizer Company Limited (+2.2%), Engro Fertilizers Limited Company (+1.9%) and Fauji Fertilizer Bin Qasim Limited (+2.0%). Mixed trend prevailed in the auto sector where big machine manufacturers were positive and car manufacturers remained marginally negative throughout the day.
“Moving forward, we expect volatility to continue. Investors are suggested to stay cautious and stick to fundamentally strong stocks.”
Trade volumes fell to 249 million shares compared with Tuesday’s tally of 354 million shares.
Shares of 381 companies were traded on Wednesday. At the end of the day, 191 stocks closed higher, 174 declined while 16 remained unchanged. The value of shares traded during the day was Rs10.65 billion.
Dewan Cement Limited was the volume leader with 36 million shares, gaining Rs0.58 to finish at Rs18.39. It was followed by TPL Trakker Limited with 17.6 million shares, gaining Rs0.83 to close at Rs20.12 and Jahangir Siddiqui and Company Limited with 16.4 million shares, losing Rs0.99 to close at Rs23.05.
Foreign institutional investors were net sellers of Rs691.8 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, September 3rd, 2015.
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