Daily Times

Karachi: Pakistan equities fail to close at a record high against the expectations of market players following profit-taking at the closing session. The benchmark index gained 397 points during intraday trading but lost the gains amid profit taking to close up by 40 points at 49,965 level.

Start of the week was on a positive note as investors tracked higher regional markets and global crude, while KSE100 Index steadily climbed during the day to test highs above 50,300 level with notable blue chips United Bank, Engro Corp, Oil & Gas Development Company and Fauji Fertilizer Bin Qasim leading the advance.

However, the market took a nose-dive in the final one hour of trading with Industrial and Consumer sideboards mostly coming under selling pressure. Steels took the worst hit as all names either hit lower price limit or ended deep in red on an unconfirmed report that auto makers have taken a stay order on recent anti-dumping duties imposed by the Naional Tarrif Commission on Chinese imports of CRC and HDGC. A similar fate befell third tier speculative plays that also tumbled in absence of strong support, according to analysts at Elixir Securities.

Volatility was witnessed in second and third tier scrips on a strong earnings outlook. Late session pressure was witnessed amid surging trade deficit data – there were rumors on Margin Trading oversight and concerns for circular debt issue in the energy sector. Reports of surging fertilizers and cement sales played a catalyst role in the higher close, said Ahsan Mehanti, senior stock analyst.

Interest was seen in the banking sector concentrated towards UBL & HBL as a foreign broker issued a report stating that the SBP could lift rates in the 2nd half of the year. The steel sector saw a sharp decline due to unconfirmed reports that steel importers were taking a stay order on the recently imposed anti dumping duty on CRC. ASL, ISL and INIL declined by 5 percent each. The government is planning to import LNG gas through second gas pipeline leading SNGP to close at its upper limit of 5 percent, according to analysts at Topline Securities.

Pakistan Oilfields stated that hydrocarbons have been encountered in appraisal well Mardankhel-3. A drill stream test resulted in flows of 195 bbl/d of condensate, 5.6 MMscf of gas per day at flowing well head pressure 4,470psi. Rough or estimated working suggests a minor impact of Rs 0.6 per share.

Mari Petroleum also notified the exchange regarding the divestment of 18.39 percent public shares; prior to responding to the government’s transfer notice, Fauji Foundation has requested the government to clarify as to how it intends to ensure the protection and preservation of Fauji Foundation’s rights and interests as stated in the Participation and Shareholders Agreement.

Systems Limited notified the PSX that Pakistan Civil Aviation Authority has awarded a multi-year contract, “Package 04A -Airport Information Management System (AIMS)”, a turnkey project for the New Islamabad International Airport to UUS-Joint Venture, a consortium led by SYS, having equal participation with its international Partner Beijing Unistrong Science & Technology Co. Ltd through its subsidiary Top Scientific Systems Inc.

Overall, volumes increased by 2.2 percent to 362 million shares, while value rose by 8.6 percent Rs18.8 billion/$179 million.

An analyst at Elixir Securities predicted that we are likely to “see volatile trading in the near term with highs above 50,000 continuing to provide strong resistance to KSE100 Index. Steel makers along with other industrials are likely to trade lower, while the court hearing of the Panama case that resumes on Wednesday further limits excitement from earnings and payout during the ongoing result season”.