Despite record earnings in certain banking and cement scrips, the Karachi share market stayed bearish amid thin trading activity Tuesday. A late session profit-taking in oil stocks is believed to have helped the bears dominate the KSE-100 share index that added 31.24 points to its Monday's 66.30 points loss. The benchmark index slid to 33,895.46 points from 33,926.70 points of the previous day.
Muhammad Mobeen at JS Research observed on the bourse an across-the-board profit-taking that the analyst attributes to declining international oil prices. US WHI crude oil was traded at $49.53 a barrel on the international market Monday. Besides late session profit-taking in oil stocks, Ahsan Mehanti of Arif Habib Corp said, a southward trend in global commodities also had a bearing on risk-averse investor sentiments.
This, he added, was despite support in bluechip banking stocks. "Rising textile sector exports data for January '15, record earnings in banking and cement sector failed to change the bearish sentiment amid thin activity at KSE," an equity analyst said.
The week's second trading day saw the index hitting the session high of 34,024.22 points before plunging to the intraday low of 33,869.45 points. Trading volume at the ready-counter was recorded contracting to 167 million stakes from the previous 172 million. The foreign portfolio investors also appeared to take profits as their net selling accumulated to $1.39 million against Monday's buying of $0.747 million.
Compared to the previous Rs 7.93 billion, the value of stocks traded grew to Rs 8.78 billion. Of the total 376 scrips traded, 102 appreciated, 255 depreciated and 19 remained unchanged. The market capital declined from Rs 7.656 trillion to Rs 7.625 trillion. Bank of Khyber kept leading the volumes with 14.4 million of its listed shares changing hands. The scrip fell by 11 paisa to close at Rs 9.87 per share. K-Electric was traded by 10.9 million, Jahangir Siddiqui Company 10 million, Fauji Fertiliser Bin Qasim 8.7 million, Bank of Punjab 6.3 million, Pak Elektron 5.6 million, Engro Corp 5.1 million, Golden Arrow 5 million, Engro Fertiliser 4.9 million and Pakistan International Bulk Terminal 4.8 million shares.
The future market settled in red zone to close at 45.52 million contracts compared to 55 million of last session. JS analyst Mobeen said the market continued with its bearish momentum. He said Jubilee Life Insurance, with 4.5 percent gain, was the day's star product as investors were anticipating good financial results from the company today.
The falling international crude oil prices, he said, pressured the E&P and OMC sector with POL dipping 1.1, OGDC 0.4 and ATRL 0.8 percent. Also under pressure, Mobeen observed, was the cement sector due to rumours that cement cartel was being destroyed with DGKC planning to expand. This week the market is expected to remain in the bearish momentum, he added.
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