KARACHI: Pakistan equities finished lower Wednesday as lower regional markets and overnight losses in the price of crude oil meant investors preferred to stay on the sidelines.
At close, the Pakistan Stock Exchange’s benchmark KSE 100-share Index fell 0.43% or 171.17 points to end at 39,615.76
Elixir Securities, in its report, stated that stocks traded listless in the morning with participants preferring to stay on the side-lines as lower regional markets, overnight losses in global crude and fear of foreign selling made investors nervous.
“Index heavy E&Ps dented KSE-100 index early on, while mid-day selling in financials, cements and select power scrips resulted in benchmark KSE-100 index closing 0.4% down,” said analyst Faisal Bilawni.
“Index-heavy Oil and Gas Development Company (OGDC PA -1.7%), Habib Bank (HBL PA -1.1%), Pakistan Petroleum (PPL PA -1.5%), Hub Power (HUBC PA -1%) and Lucky Cements (LUCK PA -0.9%) cumulatively dented index by over 115 points while concerns over domestic politics ahead of planned protests by opposition parties over the weekend kept excitement on earnings and pay-outs in check,” Bilwani added.
Meanwhile, JS Global analyst Nabeel Haroon said volatility prevailed as the index traded between an intraday high of +47 and intraday low -193 points.
“PSMC (+0.7%) in the automobile sector extended its previous day gain on the back of the automobile assembler increasing prices of its variant by 3% amid appreciating Yen prices,” he said.
“Moreover, investor interest was seen in chemical sector on the back of declining crude oil prices. Major gainers of the aforementioned sector were BERG (+3.97%) and AKZO (+1.95%),” said Haroon.
“Moving forward we expect the market to remain volatile and advise investors to remain cautious,” he remarked.
Trade volumes rose to 227 million shares compared with Tuesday’s tally of 226 million.
Shares of 395 companies were traded. At the end of the day, 173 stocks closed higher, 192 declined while 30 remained unchanged. The value of shares traded during the day was Rs10.6 billion.
Dewan Cement was the volume leader with 21.9 million shares gaining Rs0.07 to finish at Rs17.01. It was followed by Pak Electron with 14 million shares gaining Rs1.39 to close at Rs73.09 and TRG Pakistan Limited with 13.3 million shares gaining Rs0.39 to close at Rs36.25.
Foreign institutional investors were net sellers of Rs369 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Original news : http://tribune.com.pk/story/1155432/market-watch-index-closes-red-investors-remain-cautious/