KARACHI: Pakistan equities maintained their downward march on Monday as the benchmark KSE 100-share Index traded volatile and closed below the key support level at 39,300 points.
At close, the Pakistan Stock Exchange’s benchmark index recorded a fall of 0.47% or 186.54 points to end at 39,278.11.
Elixir Securities, in its report, said the market experienced dull trading with volumes on the KSE-100 index dipping as investors traded selectively in the absence of near-term triggers amid domestic political noise as Imran Khan-led PTI and other political parties held protests against the government.
“Stocks opened and traded positive for 30 minutes, supported by index-heavy oil and select names as the KSE-100 tested 39,600 followed by a sharp fall led by cement stocks,” it said. DG Khan Cement (-4%) and Maple Leaf Cement (-4.5%) dropped on reports of institutional selling, led by foreigners.
“While earnings for the latter were in line and pay-out beat expectations, the stock failed to recover on announcement of 2.2 million tons per annum brownfield expansion.
“The market recovered at midday as Pakistan Oilfields (POL, +3.1%) and Oil and Gas Development Company (OGDC, +1.7%) rose sharply tracking a rise in global crude prices. However, the recovery proved short-lived and bears continued to hold sway with the KSE-100 finishing the day down 0.5%, said the report,” commented Elixir Securities analyst Ali Raza.
Meanwhile, JS Global analyst Nabeel Haroon said the market continued its negative momentum as the index lost 186 points to close at 39,278.
“Selling pressure was seen in the fertiliser sector on the back of news that fertiliser companies have slashed urea prices by up to Rs100 per bag in order to compete with the urea imported by the state-run fertiliser company,” he said.
“The petroleum minister’s statement in a Senate special committee that they are not going to waive GIDC (gas infrastructure development cess) from the fertiliser sector sparked further selling.” Engro (-1.67%) and Engro Fertilizer (-0.85%) were major losers of the sector.
“OGDC, Pakistan Petroleum (+0.59%) and POL (+3.08%) closed in the green zone as crude oil surged above $45 per barrel. “Recent gains in crude oil prices can be attributed to the statement made by the Russian president after his meeting with Saudi deputy crown prince indicating that Russia and OPEC members might agree on an output freeze,” said Haroon.
Trade volumes fell to 253 million shares compared with Friday’s tally of 329 million.
Shares of 420 companies were traded. At the end of the day, 162 stocks closed higher, 242 declined while 16 remained unchanged. The value of shares traded during the day was Rs9.9 billion.
Dewan Cement was the volume leader with 20.2 million shares, gaining Rs0.16 to finish at Rs22.10. It was followed by Byco Petroleum with 12.9 million shares, losing Rs0.71 to close at Rs25.75 and Dewan Motors with 12.4 million shares, gaining Rs1.54 to close at Rs32.52.
Foreign institutional investors were net sellers of Rs257 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Courtesy : Express Tribune