Foreign selling keeps market in a flux

KSE-100 Index sees volatile day closing lower by mere 66 points

Ghulam Raza Rajani

KARACHI: Market sees mix to volatile trading day. Positive closure on previous day assisted market to start positively. News related to increase in duty on imported cars kept local automobile assemblers in limelight. Expected one time gain from oils well kept POL in public interest. Selling from foreigner and individuals forced market to take uturn and end the day in red.
The benchmark KSE-100 index closed lower by 66.43 point to close at 40,724.96 points. KSE All Share Index decreased by 104.08 to end at 29,154.86, KSE 30-Index declined by 35.69 points to conclude at 20,679.42, whereas KMI 30-Index up by 141.68 points to finish the day at 68,602.68 levels.
Ali Raza at Elixir Securities said Pakistan Equities closed Tuesday marginally lower after KSE100 Index met resistance at highs and midday profit-taking completely wiped all initial gains. Activity however witnessed noticeable improvement evident from USD92mn worth of shares exchanging hands on KSE All shares Index, up 60% vs yesterday. Market after a choppy start shortly regained momentum with Autos providing the early push with the sector coming in limelight as government raised regulatory duties on imported cars by 15% across all segments; Pak Suzuki Motors PSMC PA +5%, Honda Atlas Cars HCAR PA +5% hit upper circuit. Notable names across Oils, Cements and Consumer plays followed suit and pushed KSE100 Index higher by ~560 points or ~1.45%. Pakistan Oilfield POL PA +3.5% continued its rally on announcement of one-off gains on account of retrospective wellhead gas pricing impact of selected fields. On results front, International Steels ISL PA -3.4% closed lower after announcing disappointing earnings. See volatile trading to continue in near-term with flows and earnings guiding market direction.
The advance to decline ratio in the broader market remained in favour of bears. Out of 389 scrips, 147 scrips advanced, 226 declined while the value of 16 scrips remained intact.
The ready market volume increased by 33.68 per cent to 166.84 million shares as compared to 124.80 million shares traded on last trading day.
Aisha Steel Mills Limited topped the list of actives, higher by Rs 1.00 at Rs 18.16 on 15.18 million shares, followed TRG Pakistan Limited by decreased by Rs 0.69 at Rs 33.43 on 11.04 million shares and Dost Steels Limited improved by Rs 0.44 at Rs 12.24 on 9.52 million shares.
Other actives were International Steel Limited descended by 3.68 at Rs 104.97 on 7.08 million shares and Pakistan Elektron Limited enhanced by Rs 2.19 at Rs 72.65 on 6.32 million shares.
Adnan Sami Sheikh at Topline Securities said after Look like the bailout-fueled rally seems to have lost its steam. Even with the additional import control measure announced by FBR, KSE-100 index failed to compound on yesterdays gains and succumbed to profit taking. Resultantly, KSE-100 index ended marginally down by 0.2%/66pts. Market participation improved as volumes rose 34% d/d, while traded value jumped 61%.Top Index point lagers were HUBC (-2.1%), SNGP (-4%), HBL (-0.8%), PAKT (-5%) & LUCK (-1.4%) with holding 120ts; while POL (+3.5%), SEARL (+4.9%), DGKC (+2.3%), HCAR (+5%) & PPL (+0.8%) added 111pts. Sector wise; OMCs shed 47pts, Banks were down 46pts; Power eroded 40pts; while E&P's added 67pts as all the stars seem to be lining up for POL (45pts), Autos added 37pts on the back of FBR new regulatory duty list which includes higher duties on automobile imports, while Pharmaceutical and Cable Goods added 11points a piece. Although ISL (-3.4%) reported 77% earnings growth in 1QFY18 (EPS Rs2.3), the stock performed dismally crashing 8% intraday due to the markets unrealistic expectations. For some reason ISL always tanks on result day despite posting healthy earnings.
The overall market capitalization dipped by Rs 31.80 billion to Rs 8.432 trillion against Rs 8.464 trillion observed on last trading day.
Khyber Tobacco Company Limited and Indus Motor Company Limited the top gainer by Rs 58.96 and Rs 37.80 close at Rs 1,238.19 and Rs 1,773.90 respectively, while Nestle Pakistan Limited and Pakistan Tobacco Company Limited were the major losers which lost Rs 127.80 and Rs 77.49 to close at Rs 12,500.00 and Rs 1,472.50 respectively.