Pakistan News

Stocks edge lower as market consolidates

Stocks edge lower as market consolidates

KARACHI: The stock market remained range-bound for the third consecutive day, with the KSE-100 index losing 44.37 points to close at 39,208.88.

The market seemed to be consolidating at the 39,000 level as investors were loath to take fresh positions. The index tried to break loose with early intra-day gains of 68 points, but later succumbed to selling pressure.

Small investors continued to churn out shares in the hope of making some quick gains while institutions decided to wait for the release of first major corporate results.

The market witnessed foreign buying of stocks worth $1.6 million, which raised the cumulative foreign portfolio inflow for the month to $29.9m. Trading volume at the bourse increased 4pc to 178.1m shares and traded value rose 21pc to Rs13.3 billion on Tuesday over the earlier session.

Fauji Meat Limited (FML), Nestle (NESTLE) and Engro Corporation (ENGRO) took away 83 points off the index, whereas Pakistan State Oil (PSO), Kot Addu Power Company (Kapco) and Oil and Gas Development Co (OGDC) added 76 points; PSO alone contributed 47 points to the index.

“Performance of multi-utilities, exploration and production sector, refineries and steel remained mixed while fertiliser, textile and banks took a backseat,” noted analysts at Intermarket Securities.

“Engro Fertiliser (EFERT) and PSO saw investor interest as PSO closed at its upper limit while EFERT settled up 0.8pc,” said dealers at Topline Securities. Profit-taking was seen in ENGRO and Hub Power Company (HUBC). The scrips accounted for 26 points to the index decline.

Analyst Nabeel Haroon at JS Global stated that the Sui Southern Gas Company (SSGC) extended its previous day’s gain to close on its upper circuit. Despite nominal surge in the yen value, automobile sector continued its rally. Top performers of the sector were Pak Suzuki Motor Co. (PSMC; +3.1pc) and Honda Atlas Cars (HCAR; +2.0pc).

Analyst Ahsan Mehanti commented that oil and auto stocks outperformed the index on strong earnings outlook amid upbeat sales data.

Published in Dawn, July 20th, 2016

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