KARACHI: Karachi Stock Exchange (KSE) remained dreary on investors’ cautiousness and waiting clarity over Foreign Institutional Investor (FII) selling.
Traders at local bourse on Wednesday did not give much weight to Prime Minister’s visit to bourse.
KSE-100 index lost 224.22 points to close at 31,086.51 points as compared to 31,310.73 of the previous session. The KSE-30 Index shed 145.14 points and closed at 19,796.49 points against 19,941.63 points of last closing.
Faisal Bilwani of Elixir Securities said Pakistan equities closed red after listless trading with benchmark testing key support level of 31,000 in absence of buyers with turnover lower by near 30 percent versus previous weeks’ average.
Despite off market trades indicating exit to foreign investor trying to offload few illiquid names and no reports of large quantities on offer from foreign investors, locals were in no rush to buy at current levels and continued to await clarity on flows direction. Retail driven names Pak Electron (minus 4.6 percent) and Hascol Petroleum (minus 5 percent) hit lower limit near close of day on rumors of broker’s shedding margin holdings.
We expect some recovery in wider market with yield plays attracting fresh flows however we do not see aggressive local institutional participation till foreigners emerge as net buyers, said Bilwani.
Habib Metropolitan Financial Services’ analyst Kumail Chevelwalla said, “The bearish sentiments are still in place with KSE-100 index closing at 31,086 points as lackluster trading witnessed having a turnover of only 99 million with support at 31,000 points”.
KSE index closed another session in negative territory. Commercial banks churned majority of volumes where Askari Bank closed at its lower price limit with 2.8 million turnover. Cement was also dipped in red where Maple Leaf Cement and D G Khan Cement closed lower with 6.4 million and 1.8 million traded volume respectively. Investors are still afraid of taking long positions in oil and gas stocks on account of gloomy outlook of international oil, he added.
“With significant foreign outflow this month, we recommend investors to remain cautious in selecting stocks”, said Chevelwalla.
The market volume decreased to 99.206 million shares traded on Wednesday as compared to 128.303 million shares traded in previous session. The overall market capitalisation declined to Rs 6.924 trillion as compared to Rs 6.971 trillion of previous session.
Trading value at local bourse fell to Rs 6.105 billion against Rs 8.687 billion of previous session. Out of 330 scrips, 70 scrips advanced, 231 scrips declined while the value of 29 scrips remained unchanged.
The KMI-30 index dropped by 486.30 points to close at 51,379.40 points as compared to 51,865.70 points of the previous session. The KSE all-share index went 149.24 points down to close at 22,236.17 points as compared to 22,385.41 points of the previous session.
Pak Elektron was the volume leader in the market with 9.072 million shares as it closed at Rs 48.39 followed by Maple leaf Cement XD with trading of 6.476 million shares and closed at Rs 51.36. Karachi Electric Limited traded 5.403 million shares and closed at Rs 7.01.
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