Political uncertainty keeps market directionless

KSE-100 Index sees another negative closing lower by 266 points

Ghulam Raza Rajani

KARACHI: Market stays directionless. An overall negativity was seen as 78 per cent of scrips ended in bears. News related to arrestment of PTI chairman Imran Khan played an imminent role in market decline. News related to new exploration discoveries by POL assisted market to reduce the overall decline of market.
The benchmark KSE-100 index closed lower by 266.15 point to close at 40,237.53 points. KSE All Share Index decreased by 110.72 to end at 29,025.77, KSE 30-Index declined by 154.62 points to conclude at 20,326.00, whereas KMI 30-Index down by 359.61 points to finish the day at 66,826.70 levels.
Ali Raza at Elixir Securities said Pakistan Equities closed fourth consecutive session negative on trimmed losses as recovery in the final ninety minutes helped cover early declines that had pulled benchmark KSE100 Index to test and make new intraday low since October 2016. After a positive open, market was pulled into red territory with Cements leading losses on concerns of further price discounts by cement players in North; Maple Leaf Cement MLCF PA -4.9% hit limit down despite company's announcement of commencement of its 40MW coal-fired power plant, while DG Khan Cement DGKC PA -2.6% and Lucky Cement LUCK PA -1.2% also weighed on KSE100 Index. Sentiments were again dampened midday after Election Commission of Pakistan issued a non-bailable arrest warrant against Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan. Meanwhile, Pakistan Oilfields POL PA +5% continued to buck the wider market downtrend as investors came to terms with preliminary reserves estimates of its new discovery (Jhandial - Ikhlas Block) which were relatively greater in size compared to company's existing reserves. Seeing directionless market tomorrow with politics being a dampener as Ex PM Nawaz and his family members are expected to be indicted by accountability court on corruption references.
The advance to decline ratio in the broader market remained in favour of bears. Out of 395 scrips, 73 scrips advanced, 306 declined while the value of 16 scrips remained intact.
The ready market volume increased by 6.51 per cent to 137.99 million shares as compared to 129.56 million shares traded on last trading day.
K-Electric Limited topped the list of actives, higher by Rs 0.02 at Rs 6.30 on 13.51 million shares, followed by TRG Pakistan Limited decreased by Rs 0.95 at Rs 33.34 on 8.21 million shares and Aisha Steel Mills Limited declined by Rs 0.55 at Rs 16.50 on 7.32 million shares.
Other actives were WorldCall Telecom Limited descended by 0.22 at Rs 3.02 on 7.14 million shares and Pakistan Elektron Limited dipped by Rs 2.37 at Rs 69.01 on 4.31 million shares.
Adnan Sami Khan at Topline Securities said After an early stint in the green, KSE-100 index tanked 958pts from intraday high of 40,792pts to intraday low of 39,834pts, taking out last week's low of 39,870pts in the process. The market seems all geared up for Ex-PM Nawaz Sharif & co's expected indictment tomorrow.  While news of Imran Khan's arrest warrants & trade deficit also added pressure however some late recovery was seen, with the KSE-100 index ending down only 0.7%/266pts. Volumes raised 7% d/d, while traded value was up 14%. Index point losers were HUBC (-1.8%), MCB (-1.5%), PSO (-2%), KTML (-5%) & DGKC (-2.5%) eroding 106ts; while POL (+5%), PPL (+1.2%), PAKT (+4.8%), NESTLE (+0.8%) & MUREB (+4.9%) added 111pts. Sector wise; Cements shed 73pts despite MLCF (-5%) coal power plant coming online, a stale news article pertaining to a decline in prices (citing a Topline report which was issued on 3rd Oct) seemed more material to investors; Banks shed 61pts; Power 40pts; while E&P's added 71pts as the market had time to digest the significance of POL latest oil discovery. Going forward the index seems to have a formed double bottom around the 39,850pt mark, while latest FX reserves US$19.7bn (down only US$91mn WoW) & FIPI of +US$5.0mn maybe taken as signs of hope, barring any untoward incidents tomorrow.
The overall market capitalization dipped by Rs 42.43 billion to Rs 8.412 trillion against Rs 8.454 trillion observed on last trading day.
Unilever Pakistan Foods Limited and Nestle Pakistan Limited the top gainer by Rs 240.00 and Rs 101.00 close at Rs 6,800.00 and Rs 13,000.00 respectively, while Sanofi Aventis Limited and Wyeth Pakistan Limited were the major losers which lost Rs 81.55 and Rs 45.00 to close at Rs 1,549.45 and Rs 1,635.00 respectively.