KARACHI: Clouds of uncertainty cast a dark shadow over the equity market on Friday. These stemmed from uncertainty in politics on the national and international front.
Faltering coal prices pushed up cement stocks, but the push proved insufficient to rescue the bourse. At close, the Pakistan Stock Exchange’s benchmark KSE 100-share Index recorded a fall of 0.20% or 86.86 points to end at 42,324.94.
According to Elixir Securities analyst Ali Raza, the equities traded range bound and closed marginally lower while turnover, as expected, remained on the lower side on selective institutional interest.
“Market started on a positive note helped by the cement sector that surged and contributed to gains as investors tracked global coal benchmark which witnessed a sharp dip of over 15% in anticipation of a rise in coal production by China in coming winter. Resultantly, all cement names recorded a surge.”
However, he said, the wider market failed to follow suit and major sectors including financial, exploration and production and fertiliser dragged the KSE-100 Index lower on relatively lower volumes.
“Cement stocks also saw selling pressure at their intra-day highs and closed with trimmed gains on reported foreign selling.”
With no major triggers in sight amid persistent foreign selling in the wider market, stocks were likely to trade with negative bias next week and the benchmark index may see a few hundred points correction, he said.
Meanwhile, a report of Global Research said the local bourse witnessed a dull session. “Habib Bank (-1.18%), Lucky Cement (-1.1%) and Oil and Gas Development Company (-0.55%) remained the major stocks that dragged the index down by 66 points possibly owing to major foreign selling.”
However, he said, Pakistan Services (+3.77%), Hascol (+3.09%) and MCB Bank (+0.52%) supported the index by 39 points. Murree Brewery (+5%) closed at its upper circuit, supporting the index by 10 points as news of the Supreme Court’s decision to open wine shops in Sindh surfaced in the market.
“Going forward, we expect the market to remain under pressure owing to closure of futures positions during the rollover week.”
Trade volumes fell to 491 million shares compared with Thursday’s tally of 497 million.
Shares of 423 companies were traded. At the end of the day, 178 stocks closed higher, 232 declined while 13 remained unchanged. The value of shares traded during the day was Rs12.3 billion.
Dost Steel was the volume leader with 63.1 million shares, losing Rs0.15 to finish at Rs5.03. It was followed by Japan Power with 46.7 million shares, gaining Rs0.14 to close at Rs6.66 and PIAC(A) with 45.2 million shares, gaining Rs0.51 to close at Rs12.14.
Foreign institutional investors were net sellers of Rs404 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, November 19th, 2016.
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Courtesy : Express Tribune