Profit hunters drag KSE-100 index in the red

Source: Published in Business & Economy on Wednesday, May 25, 2016

KARACHI: The seven-day winning streak at the stock market was broken on Tuesday as the KSE-100 index lost 141 points (0.38 per cent) to close at 36,582.35. As the investors focus shifted to roll-over of futures contracts, most investors decided to book profit.

Traded volumes increased by 12 per cent to 298m shares, whereas traded value was up 7pc to Rs11.4bn. Foreign investors were net buyers of $2.26 million worth equity on Tuesday.

Dealers at Global Securities said that the index succumbed to selling from index heavyweight, commercial banks. Moreover, the E&P sector also emerged as the major laggard due to decline in international Oil prices in light of Iran’s denial of freezing output.

Analyst Ahmed Saeed Khan at JS Global also noted that as oil stocks came under pressure, POL was down 2.37pc and OGDC lower by 1.77pc. The banking sector continued to remain under pressure after the policy rate cut to 5.75pc, where HBL dipped 0.76pc and MCB 1.73pc. Marginal positivity was witnessed in the automobile sector on the back of depreciating yen, as top performers of the sector were INDU rose 0.25pc and PSMC 1.75pc.

Analysts at Intermarket Securities pointed out that the Attock group (particularly its refinery arm) had stood out strong where ATRL added 48pc along with NRL 89pc (from their 2016 lows).

Cements failed to maintain their previous momentum and succumbed to selling pressure. “Main contribution to Tuesday’s decline came from HUBC, MCB, OGDC, HBL and POL to the tune of 142 pts” analyst calculated.

Ahsan Mehanti, analyst at Arif Habib Corp, commented that stocks closed bearish amid higher trades on consolidation in the post earning season. Activity was led by second and third tier scrips on pre-budget speculations.