KSE-100 Index declines to 40,464 points level, down by 1.84 percent

Author: Staff Report

KARACHI: Pakistan equities further declined to 40,464 points level, down -1.84 percent on Monday as investors preferred to remain on sidelines ahead of general elections to be held on 25 July 2018.

KSE-100 Index closed in the red zone for the second consecutive day, 758 points below the previous trading session. Negativity in the market was due to noise on the political front, with upcoming General Elections two days later, declining foreign reserves and lower oil prices.

Retail names dominated the top ten volume charts as they collectively contributed around 43 percent of total trading activity. DG Khan Cement losing 3.62 percent managed to lead in volume charts on the day. On a separate note, Pakistan Stock Exchange announced the revised clearing schedule for 23 & 24 July.

“We expect trading activity to remain dull tomorrow, as investors await the final outcome of the Elections. A clear majority for any party can result in a relief rally towards the end of the week”, said Elixir Securities’ analyst Murtaza Jafar.

Volumes were dullish, with only 109 million shares traded throughout the day, as compared to 223 million on the last trading day.

K-Electric losing 2.57 percent from the power sector led the volume chart with more than 7 million shares exchanging hands. Cement sector remained under the hammer as the sector cumulatively contributed -84 points to the index, where DG Khan Cement with 3.62 percent decline, Chitral Cement losing 3.35 percent, Maple Leaf Cement with 3.17 percent and Lucky cement losing 2.97 percent were the major losers.

Banking space closed lower than its previous day close where big banks such as MCB losing 2.59 percent, United Bank Limited (UBL) losing 1.65 percent, Habib Bank Limited (HBL) losing 2.14 percent and Bank Alflah losing 2.91 percent closed in the red trajectory. Equity Maaz Mulla analyst said investors are recommended to trade cautiously and reduce short-term positions on strength, and await clarity on prevailing political issues.

Published in Daily Times, July 24^th 2018.