The Karachi share market opened the week on a bearish note and the benchmark KSE-100 index lost 147 points to close at 33,796 points Monday compared to 33,943 points Friday. "Karachi stocks witnessed a volatile session on the first trading day of the week on institutional profit-taking on weak earnings outlook," said Ahsan Mehanti an analyst at Arif Habib.
Uncertainty in global commodities, rising coal prices and consolidation post earnings announcements played a catalytic role in the bearish activity at KSE despite support in select auto, cement stocks after strong sales growth in Jan'15, he added. Analysts at JS said the market continued its bearish momentum and volumes remained lacklustre. Cement sector remained depressed with profit-takers dominating the day. MLCF, LUCK, DGKC, FECTC and CHCC all ended lower due to rise in international coal prices, they added.
FCCL witnessed a slight surge amid financial announcement of Rs 1.21 EPS and a dividend payout of Rs 1.0/share, slightly higher than market expectations. ENGRO family continued its downward run with Engro Corp ending 4.5 percent lower prior to its upcoming financial result. They said pressure was witnessed in the automobile sector with EXIDE, INDU, HCAR and PSMC all significant scrips ending substantially lower in Monday's trade. Moving forward, they are expecting that the market may remain under pressure.
During the intraday trading, KSE-100 index fluctuated in red and green zones, touching intraday high of 34,032 points and a low of 33,631 points. Trading volume moved downward as over some 177 million shares were traded compared to 249 million in the previous session. Market capitalisation posted Rs 22 billion decline to Rs 7.7 trillion. Among top 10 volume leaders, nine companies recorded a negative trend. With 18 million shares volume, P.I.A.C (A) emerged the volume leader, losing Re 0.03 to close at Rs 9.26. Fauji Cement stood second, up Re 0.36 to close at Rs 31.68 on 16 million shares. Jah. Sidd. Co ranked third with 15.8 million shares, down Re 0.93 to Rs 22.39.
Bank of Khyber closed at Rs 9.71, down Re 0.12 on 10 million shares. Some 9.5 million shares of Pak electron were traded and the scrip moved down by Re 0.08 to Rs 58.71. Maple Leaf Cement lost Re 0.73 to Rs 56.16 on 7.1 million shares. With 6.3 million shares, Engro Corporation shed Rs 12.66 to Rs 267.93. K-Electric closed at Rs 8.38, down Re 0.02 on 5.5 million shares. Pak Int. Bulk decreased by Re 0.92 to Rs 36.84 on 5.3 million shares. With some 4.8 million shares, D.G. Khan Cement closed at Rs 2.10, losing Rs 2.10.
Island Textile and Sanofi-Aventis were the top gainers with Rs 38.78 and Rs 36.20 to close at Rs 838.78 and Rs 762.80, respectively. Wyeth Pak Ltd and Exide (Pak) were the top losers with Rs 190.00 and Rs 81.24 to close at Rs 3,621.00 and Rs 1,543.67, respectively.