Last update: Mon, 15 Feb 2016 02am

Selling spree pushes index down

Karachi Stock Exchange ended lower Tuesday due to selling pressure across-the-board and the benchmark KSE-100 index lost 120 points to close at 24,879 points down from 24,999 points Monday. Analysts said the market was technically overbought, therefore some correction was already expected in the market ahead of massive buying during last few sessions.

"Some pressure was seen at the bourse as benchmark index declined by 0.48 percent to close at 24,879 points," said Asad I Siddiqui, Senior Manager Research at Topline Securities. Participation remained on the lower side with daily average volumes at Rs7.9 billion, he added.

Asad said some profit-taking was also witnessed in OGDC, POL, PPL and FCCL as the market was overbought. On the other hand, positive news-flow regarding PIA privatisation attracted renewed investor interest and its scrip rallied 8 percent to close at Rs 8.75, he added.

The KSE?100 index was found testing the level of 25,000 for the third day in a row, which it failed to sustain. The index also hit intraday high of 25,103 points and a low level of 24,852 points. Despite bearish trend, trading activity was on the higher side and the volume at the ready counter surged to 177.532 million shares compared to 151.46 million in the previous session. Trading took place in 355 scrips, of which 139 went up, 192 went down and that of 24 remained unchanged.

Among top 10 scrips, six scrips closed positive while four negative. PIA was the volume leader with 27.5 million shares. It moved up by Re. 0.06 to close at Rs 8.15. Fauji Cement lost Re 0.12 to close at Rs 13.65 on 13.59 million shares. Bank Islami Pakistan fell by Re. 0.09 to Rs 6.62 per share on 11.5 million shares. Some 9.3 million shares of Bank Alfalah were traded and the scrip gained Re 0.27 to close at Rs 26.10. Engro Corporation lost Re. 0.06 to Rs 160.0 on 8.4 million shares.

D G Khan Cement gained Re. 0.22 to close at Rs 77.51 on 5.6 million shares. With an increase of Re. 0.15, share price of Maple Leaf Cement closed at Rs 25.80 on 4.9 million shares. Lotte Chemical declined by Re. 0.05 to Rs 7.04 on 4.7 million shares. With a trading volume of 4.1 million shares, Engro Food gained 0.51 to close at Rs 95.70 while Nishat (Chunian) closed at Rs 55.05 gaining Re.0.02 on 3.1 million shares.

Colgate Palmolive and Wyeth Pak Ltd were the top gainers increasing by Rs 88.20 and Rs 44.50 to close at Rs 1,852.20 and Rs 4,544.50, respectively. Nestle Pak and Rafhan Maize were the worst losers declining by Rs 430.00 and Rs 400 to close at Rs 8770.00 and Rs 7,700.00, respectively. Ahsan Mehanti, an analyst at Arif Habib said Pakistan stocks closed bearish after US warning on funds delay upon Nato routes blockage. Speculations continued in stocks across-the-board as investors awaited update on release of Coalition Support Fund and security assistance due to ease in the rupee instability on record low FX reserves, he added.

Mehanti said institutional support remained in select stocks in fertiliser sector on expected availability of concessionary gas and cement sector on rising local prices.

Copyright Business Recorder, 2013