RECORDER REPORT
KARACHI: Negative sentiments prevailed on Karachi Stock Exchange (KSE) following profit-taking in select scrips. The benchmark KSE-100 index lost 270 points to close at 34,456 points Tuesday compared to 34,726 points Monday.
Ahsan Mehanti of Arif Habib Corp said stocks closed bearish on institutional profit-taking after dismal earnings announcements in the oil sector.
“OGRA announcement regarding increase in gas prices up to 38.5 percent, the Federal Board of Revenue’s increase in sales tax on petroleum products, uncertainty in global stocks and rising political uncertainty played a catalytic role in bearish activity post major earning announcements at KSE,” he added.
During the intraday day trading, the market moved in the red and the green zone touching 34,914 points highest and 34,335 points lowest level. Following the negative sentiment, the market capitalisation declined by Rs 53 billion to Rs 7.482 trillion down from Rs 7.536 trillion. Trading volume at the ready counter remained stable at 353 million shares.
Analysts at Topline said that Asian stock markets rattled again after China’s official manufacturing index showed further signs of weakness and tracking the regional market coupled with local political uneasiness, Karachi stock market remained under pressure.
Sui Southern Gas (SSGC) and Sui Northern Gas (SNGP) closed at their upper limits as the government announced the much awaited increase in gas prices. Moreover, profit-taking was seen in Fauji Fertilizer Company (FFC), down 3.1 percent, and Fauji Fertilizer Bin Qasim (FFBL), down 4.4 percent, as investors felt these companies will not be able to fully pass on the gas price hike, they maintained.
Increase in international oil prices kept investors excited in oil stocks except for Pakistan State Oil (PSO), which declined by 3.5 percent on lower than anticipated 4QFY15 results. Despite impressive 4QFY15 result and payout, Fauji Cement (FCCL) failed to excite investors and closed down 1 percent, they added.
Trading took place in 401 companies, of which 112 closed in green zone, 270 in the red, while share price of 19 companies remained unchanged. Major activity was seen in Dewan Cement, Sui North Gas, Pace Pak Ltd, Sui South Gas and Pak Elektron with trading volumes of 43.6 million, 15.3 million, 13.5 million, 13.3 million and 13 million shares, respectively.
Ahmed Saeed Khan of JS Research said volatility prevailed in Tuesday’s session as the index juggled 577 points between red and green to finally close down 0.78 percent. Following the news of gas tariff hike, the fertilizer sector and initially the cement sector witnessed pressure, although the cement sector recovered to close mostly in the green as the increase in gas tariff is expected to be passed on to the customers by the cement manufacturers.
Murree Brewery and Sapphire Tex were the top gainers with Rs 48.81 and Rs 43.00 to close at Rs 1,032.25 and Rs 903.00, respectively. Unilever Food XD and Rafhan Maize were the top losers with Rs 288.00 and Rs 130.00 to close at Rs 7,512.00 and Rs 9,125.00, respectively.
