Daily Times

Karachi: Pakistan Equities maintained bearish spell with benchmark KSE100 index trading volatile and closing below key support of 39,300 as the investors opted for profit booking amid the political noise. The bench mark KSE 100 index lost further 186.54 points to settle at 39278.11 level.

Trading at the bourse started off with positive not for early half hour but lost momentum afterwards. “Market witnessed dull trading with volumes and turnover on KSE100 index both dipping as investors traded selectively in absence of near-term triggers and amid domestic political noise as Imran Khan led PTI and other regional parties hold protests against ruling PMLN” said report by Elixir Securities.

The early positive activity was supported by index heavy Oils and select index names followed by nosedive led by Cement sector on reports of institutional selling led by foreigners. While earnings for the latter were inline and payout beat expectations, stock failed to recover on announcement of 2.2 mtpa brownfield expansion.

Mid day recovery came as Pakistan Oilfields and Oil & Gas Dev Co recovered sharply tracking rise in global crude as Saudia Arabia and Russia deliberated about stabilizing oil market, however recovery proved short-lived as bears continued to hold sway with KSE100 index finishing the day down 0.5 percent. “The overall trend is not negative in the market. Foreign investors are also active that may lead to recovery”, said senior analyst, Khurram Schehzad.

Turnover was down to 252 million share as compared to 329 million share shares traded during previous session. Market value of shares traded at the equity market was also down to Rs 9 billion from Rs 12 billion.

Major activity was witnessed in cement sector due to which Dewan Cement led the top volume leaders with 20 million shares followed by Byco Petroleum (12 million), Dewan Motors (12 million),K-electric (12 million), Jah. Sidd. Co.( 11 million) and Aisa Steel Mill (10 million).

Major gainers were services Industries and Ghandhara Ind. with Rs 58.77 and Rs 30.97 respectively while Muree Brewery and Sanofi-Aventis shares value declined by Rs 63.70 and Rs 34.10 respectively.

Shares of 420 companies changed hands at the equity market on Monday out of which value of 162 companies ended in green while 242 depreciated and 16 companies’ share value remained unchanged.

Equity analysts expect volatile market and strong support at 33,000 level as investors closely monitor institutional activity to get a sense of market direction while domestic politics remains a dampener near the end of earnings season.