RECORDER REPORT
KARACHI: The Karachi share market remained bearish on the second day in a row on institutional profit-taking triggered by PTI and PAT announcements that both will continue their protests till the resignation of Prime Minister Nawaz Sharif. The benchmark KSE-100 index lost another 222 points Tuesday to close at 28,630 points down from 28,852 points.
Ahsan Mehanti, an analyst at Arif Habib, said that ongoing political uncertainty and rupee instability played a catalytic role in the bearish activity at KSE
“Stocks closed bearish on cautious note on institutional profit-taking after revolution marchers planned to derail government announcing country-wide sit-in and PTI resignations from national and provincial assemblies,” he added.
He said above expected financial results of Hubco and NBP supported the index to close above session lows.
During the intra-day trading, the market moved in red zone and the KSE-100 index touched 28,288 points lowest level. Following the selling pressure, volume at the ready counter surged to 145 million shares compared to 116 million in last session.
Market capitalisation shrank by Rs 62 billion to Rs 6.698 trillion against previous Rs 6.761 trillion. Trading took place in 355 companies, of which 81 closed in green zone, 260 in red, while share prices of 14 companies remained unchanged.
Analysts at JS said the market lost further ground today as the political situation entered a deadlock with both the protesting political parties and the government remaining at the loggerheads.
“Institutional buying towards the end of the session helped the index recoup some lost ground as the market recovered 200 points from its low to close above the 28,600 mark,” said Ovais Ahsan, analyst at JS.
The IMF decision to link the next loan tranche with 4 percent power tariff hike and passing of a legislation providing autonomy to the State Bank created uncertainty over the timing of the payment, he said
In addition, India’s decision to cancel secretary-level talks with Pakistan also created negative sentiment, he maintained.
Among top 10 volume leaders, only two companies recorded a positive trend. JS Bank Limited emerged the volume leader as its some 12.35 million shares were traded, losing Re. 0.01 to close at Rs 4.87. Maple Leaf Cement stood second, down Rs 1.26 to close at Rs 26.71 on 11.24 million shares. Lafarge Pak ranked third with 9.8 million shares. It closed at Rs 15.26, down Re 0.35. With a trading volume of 7.56 million shares, Bank Al-Falah gained Re.0.05 to Rs 27.29.
B.O.P declined by Re 0.22 to close at Rs 7.96 on 7.5 million shares. Some 6.4 million shares of Fauji Cement were traded. It closed at Rs 19.89, down Re 0.12. Jah. Sidd. Co. lost Re 0.43 to Rs 8.49 on 5.7 million shares. Pak Elektron Ltd fell by Re 0.57 to Rs 27.61 on 4.6 million shares.
With a trading volume of 3.83 million, TPL Trakker Ltd moved up by Re 0.99 to close at Rs 8.79. TRG Pak Ltd closed at Rs 10.33, down Re 0.17 on 3.8 million shares.
Shezan Inter and Exide (Pak) were the top gainers with Rs 43.00 and Rs 33.34 to close at Rs 943.00 and Rs 700.27, respectively. Nestle Pak and Rafhan Maize were the top losers with Rs 385.00 and Rs 380.00 to close at Rs 7,315.00 and Rs 10,120.00, respectively.
Samar Iqbal, Assistant Vice President, Equity Sales Topline, said equities remained depressed as uncertainty on the political scene continues and KSE-100 index declined by 0.77 percent.
“Volume showed slight improvement to 145 million shares, while value dropped to $63 million (value Rs 6.3 billion), she said.
HUBC, BAFL and NBP announced their better than expected June quarter results while HUBC gained 3.56 percent after the result, she added.
