The KSE-100 index on Monday lost 10.85 points to close at 13,864.68 points due to profit-taking by local and foreign investors and institutions in late hours. The market opened on a strong positive note and the index breached 14,000 psychological level to hit 14,025.95 points intra-day high.
However, this momentum could not continue as the investors opted for profit taking on available margins and the index dropped into negative zone at 13,836.21 points intra-day low level. The foreign investors remained net sellers of shares worth $1.26 million.
Trading activities remained low as the volumes at ready counter declined to 348.244 million shares as compared to 433.019 million shares traded on last trading session. Total market capitalisation reduced by one billion rupees to stand at Rs 3.564 trillion. Of the total 374 active stocks, 177 closed in positive and 138 in negative zones while the value of 59 stocks remained unchanged.
WorldCall Telecom was the volume leader with 30.864 million shares and gained Re 0.09 to close at Rs 4.05. In the cement sector, Dewan Cement and Lafarge Pakistan lost Re 0.51 and Re 0.13 to close at Rs 6.19 and Rs 5.16 with 21.066 million shares and 15.352 million shares respectively while Fauji Cement and DG Khan Cement increased by Re 0.20 and Re 0.39 to close at Rs 6.07 and Rs 39.58 with 19.681 million shares and 15.206 million shares respectively. KESC inched up by Re 0.57 to close at Rs 4.53 with 19.304 million shares.
In the banking sector, Summit Bank and NIB Bank gained Re 0.07 and Re 0.15 to close at Rs 4.70 and Rs 2.85 with 17.300 million shares and 12.233 million shares respectively. Jahangir Siddiqui Co inched up by Re 0.72 to close at Rs 21.65 with 16.725 million shares. Pace (Pak) Limited lost Re 0.11 to close at Rs 3.60 with 12.846 million shares.
Unilever Pak and Nestle Pak were the highest gainers increasing by Rs 271.69 and Rs 87.70 to close at Rs 5844.49 and Rs 4509.00 respectively while Attock Petroleum and Lucky Cement were the worst losers declining by Rs 5.81 and Rs 4.01 to close at Rs 456.03 and Rs 123.56 respectively. Hasnain Asghar Ali, Head of Equity Sales at Invisor Securities said that the benchmark indices witnessed high volatility mainly due to institutional profit taking in the frontline stocks at 14000 psychological, thereby restricting front liners from making substantial volumetric contribution unprecedented decline was although averted due to cautious accumulation on dips. The KSE-100 and KSE-30 closed in red zone, the turnover was led by various low priced stocks, running on unconfirmed news flows suggesting buyouts and turnarounds.
Although the sentimental and regional impact of presidents visit and award of granting amnesty on various undeclared assets that has been given to FBR may have offered the likely trigger upon confirmation, permission granted to financial institutions to invest in national saving certificates to cater for huge government borrowings, besides proving counterproductive for equity market growth, gives a clear indication of tough economic and financial horizon and less chances of relation in benchmark interest rate that may have a case of 25-50 bps otherwise, he added.
Stance therefore stays cautious ahead of MP announcement, confirmation of powers awarded to FBR for granting amnesty may however direct fresh funds to the low equity markets, dips in frontline stocks yielding high and trading below the potential multiples in case of a ideal infrastructure can be looked for accumulation, he said.
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