The Karachi share market witnessed heavy selling pressure on Thursday due to uncertainty on political front and law and order situation and the KSE-100 index hit 15,178.67 points intra-day low level down by 225.50 points.
However, late buying in some selective stocks mainly in the cement sector, supported the index to partially recover its intra-day losses and finally, the KSE-100 index closed at 15,304.92 points level, down by 99.25 points from its previous day level. The KSE-30 index lost 71.71 points and settled at 18,656.42 points level.
The market started in positive and the index surged to 15,438.17 points intra-day high level, but it could not sustain that level due to selling pressure, as the investors preferred to offload their holdings at available margins.
Trading activity also shrank as the ready market volume declined to 304.666 million shares as compared to 315.423 million shares traded a day earlier. The futures market turnover stood at 86.274 million shares against 86.939 million shares previously.
The overall market capitalisation declined by Rs 31 billion to Rs 4.685 trillion. Trading took place in 333 scrips, out of which 217 scrips closed in negative and 93 scrips closed in positive while the value of 23 scrips remained unchanged.
Healthy buying was witnessed in he cement sector as DG Khan Cement and Lucky Cement surged by Rs 3.65 and Rs 0.95 to close at Rs 118.05 and Rs 144.95 with 32.244 million and 13.811 million shares, respectively. Nishat Mills also remained active and gained Rs 5.20 to close at Rs 129.70 with 25.004 million shares. Azgard Nine increased by Rs 1.05 to close at Rs 74.00.
Fauji Fertiliser Bin Qasim declined by Rs 2.10 to close at Rs 40.85. Engro Chemical 1.65 to close at Rs 357.10. Arif Habib Sec lost Rs 8.50 to close at Rs 178.00.
In the banking sector, NIB Bank and Bankislami Pak decreased by Rs 0.65 and Rs 0.40 to close at Rs 18.00 and Rs 19.35, respectively. POL lost Rs 5.00 to close at Rs 375.00.
Siemens Pakistan and Bata (Pak) gained Rs 43.00 and Rs 30.00 to close at Rs 1,687.00 and Rs 630.00, respectively while Nestle Pakistan and AKD Capital Limited lost Rs 75.00 and Rs 21.00 to close at Rs 1,505.00 and Rs 745.00, respectively.
Ahsan Mehanti at Shehzad Chamdia Securities said that intense profit-taking was witnessed at the share market on Thursday as political uncertainty increased and the law & order situation deteriorated in Karachi, which forced the investors to offload their holdings at available margins.
On the other hand, the SECP opposed proposals for cut in CVT, WHT, which also created negativity at the share market. Uncertainty over the fate of imposition of capital gains tax was also another factor, which invited selling at the share market.
Hasnain Asghar Ali at Aziz Fidahusein Securities said that in the absence of renewed buying interest, the index changed the direction and underwent a healthy adjustment of 267 points.
Temptation in certain stocks trading well below their book values invited accumulation in those stocks while group specific stocks joined the rally. Thereby allowing the index to find strong support around previously mentioned level of 15,190-15,196. The day-end short covering on the other hand allowed index-reducing losses incurred during the session and close with a loss of 99 points, he added.
With many fronts still open new buyers are unlikely to storm in as no doubt these are not the very best levels. Although looking at the local multiples with an international prospective the local PE''s can attract foreign players provided the law and order issues are addressed.
The strategy to address the ailing economy is unfolded and taxation issue on capital markets is made public, two latter issues will be clear after budget, therefore, long-term view is still reserved. Technically, (if fundamentals stay intact) index will continue to face resistance around 15,325-15,333 while intra-day support stays at 15,010-15,017.
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PK EURO STR AZ
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Yld Bond Bmk Spread Asset
Name Coupon Mat. Dat Curr Bid Ask Net. Chng B Yld A. Yld Net. Ch Type Spread to Swap Swap Spd Time Date Contrib Ref
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PAKISTAN 6.75 19FEB09 USD B100.000 A 6.735 STR +520.6 +429.3 +411.0 01:27 09APR
PAKISTAN 7.125 31MAR16 USD B+87.000 A90.000 9.487 8.904 STR +600.1 +562.0 +500.0 01:19 09APR
PAKISTAN 6.875 01JUN17 USD B85.500 A88.500 9.260 8.726 STR +577.3 +525.0 +460.2 01:13 09APR
PAKISTAN 7.875 31MAR36 USD B89.010 A92.000 8.951 8.637 STR +463.1 +430.2 +380.9 01:19 09APR
PAKISTAN MOBILE 8.625 13NOV13 USD B89.500 A93.000 11.202 10.302 STR +859.5 +770.6 +700.0 01:16 09APR
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