Equities lack triggers

The volatile global crudes again reflected adversely on Pakistan equities on Tuesday when benchmark KSE-100 index shed 0.35 percent to close at 32,623. With index moving both ways to hit the intraday high and low of 32,769 and 32,585, trading volumes ended higher at 204 million shares valuing up to Rs 7.96 billion. Of the 330 scrips traded, 116 gained, 189 lost and 25 remained unchanged in terms of valuation.
The market capital slid having accumulated to Rs 6.81 trillion. Foreign investors ended the day in green and bought net portfolios of $201,250.
While individual investors offloaded $221,690 positions, institutional and overseas Pakistanis made net buying of $306,569 and $116,281 respectively.
NIB Bank, which rose to Rs2.38 at close, led volumes with 75.4 million shares trading. Other volume leaders included K-Electric, Engro Foods, TRG Pakistan, Silk Bank, Dewan Cement, Engro Corp, Cherat Cement, DG Khan Cement and OGDC.
Trade in futures contracted to 19 million contracts from Monday's 20.6 million.
"Weak sentiments witnessed at the PSX amid pressure in oil and fertilisers stocks after plunge in global stocks and crude prices," viewed Ahsan Mehanti Arif Habib Corp.
The analyst said institutional support in cement and banking stocks on announcement of merger talks of NIB and MCB Bank and the SBP Governor's affirmations on macroeconomic growth and stability.
"Concerns for dismal exports and falling local fertiliser prices played a catalyst role in the bearish close at PSX," he said.
Topline analysts said the market lacked triggers which made investors book profits.
In trading, they said, major activity was seen in NIB Bank and K-Electric.
"Primary reason for NIB being the volume leader was announcement of a potential merger between MCB Bank and NIB. It resulted in the scrip rising 10.7 percent," analysts said.
Profit-taking also was witnessed in oil exploration stocks amid decline in international oil prices. Pakistan Petroleum, OGDC and Pakistan Oilfields fell in the range of 1.8-4.2 percent.
Backed by attractive valuations, cherry picking was seen in cement sector stocks where Cherat Cement and D G Khan Cement grew 4.5 and 1.1 percent.
Engro Foods kept investors attracted to add 4.6 percent in value. "Since the announcement of intention to acquire 51 percent stake in EFOODS by FriesmanCampina, the stock has risen 29 percent in 10 trading sessions," Topline analysts observed.