Daily Times

KARACHI: Pakistan shares closed weekend session slightly lower after paring morning losses that pulled benchmark KSE100 index towards 42,300 level. Benchmark KSE 100 index closed 58 points down at 43078.38 level.

Market started on a weak note as sentiments remained subdued amid prevailing noise on political and weak financial results. Stocks carried bearish momentum and skidded lower while activity in wider market was also restricted specially in the morning session. Crude prices increase and reports that Nawaz Sharif and his sons would not appear for an accountability hearing invited mid-session support, analysts at Elixir Securities commented.

Index however recovered in afternoon session as gains in Oils and select shares on reported local institutional buying helped cover the declines.

The benchmark KSE has fallen below the July 2017 low of 43,027 level during the session on Friday indicating continuation of intermediate correction. This exposes the deeper support between 41,897 and 41,456 levels. The aforesaid support coincides with the 377-day Fibonacci average (42,559). Technically, the market is oversold and low volumes accompanying decline confirm the corrective nature of fall. Immediate resistance resides around 43,938 level. A break above 44,332 level is required to reverse the downtrend, analysts at AKD Securities observed.

Pakistan Petroleum and Oil & Gas Development Company were among top gainers. While among losers, Engro Corp fell as much as 2.3% and its holding company Dawood Herculues plunged as much as 3.9%, after Engro announced sub-par quarterly result.

Azgard Nine topped the volume leaders’ list with 18.1 million shares traded followed by, Aisha Steel Mill 14.2 million, TRG Pak 13.1 million, B.O. Punjab 7.8 million, and K-Electric 7.5 million.

During the week key news flows impacting the market included Nawaz Sharif’s counsel filing review petition against Panama leaks case verdict, NAB sending letter to Saudi authorities requesting details of the Azizia Steel Mills, total foreign exchange reserves falling consecutively fifth week to $19.94bn during the week ended Aug 11’17, country’s service exports rising 1.76%YoY to $5.5bn in FY17 and net FDI during Jul’17 clocking in at $222 million.

Performance wise, scrips losing the most during the week were ASTL (-15.71%WoW), PSMC (-15.43%WoW), EFOODS (-13.02%WoW), CHCC (-10.90%WoW) and GWLC (-10.06%WoW). Foreign interest continued to wane amidst rising concerns over currency depreciation and political instability, where net outflows during the week were $2.04 million against $31.16 million of preceding week.

Analysts expect that the volatility may persist next week with flows and domestic politics mainly guiding market direction. Chartists expect strong support near current levels and expect a bounce back given oversold market conditions.

Published in Daily Times, August 19^th 2017.