Stocks snap winning streak

Pakistan Stock Exchange witnessed a volatile session as the benchmark KSE-100 index traded between 49,779.53 intraday high, up 114 points and 49,429.42 intraday low, down 235 points. The index closed at the level of 49,555.83 points with a net loss of 110.14 points Friday.
Trading activity also remained low as the daily volumes on the ready counter declined to 338.184 million shares as compared to 447.243 million shares traded Thursday. The market capitalisation decreased by Rs 26 billion to Rs 9.871 trillion. Out of total 413 active scrips, 275 closed in negative, 124 in positive while the value of 14 stocks remained unchanged.
K-Electric was the volume leader with 46.739 million shares. It gained Rs 0.11 to close at Rs 10.52 followed by Lotte Chemical that lost Rs 0.16 to close at Rs 9.45 with 35.570 million shares. TRG Pak increased by Rs 0.13 to close at Rs 58.76 with 20.549 million shares.
Sanofi-Aventis and Wyeth Pak were the top gainers with Rs 119.99 and Rs 73.45, respectively to close at Rs 2,519.87 and Rs 4,600.00. Unilever Foods and Island Textile were the top losers with Rs 275.00 and Rs 53.20, respectively to close at Rs 5,725.00 and Rs 1,127.18.
Nabeel Haroon at JS Global Capital said that volatility prevailed in the market as the index traded between an intraday high of +114 points and intraday low of -235 points to finally close at 49,556 level. EFOODS (up 1.40 percent) and ENGRO (up 3.68 percent) gained to close in the green zone as the former declared its 2016 result. PIBTL (up 2.68 percent) gained on the back of the news that dry terminal is all set to come online by next month. ISL gained to close on its upper circuit for the third consecutive day of the week on the back of expansion announced by the company. In its expansion plan, the company intends to add Cold Rolling Mill and related facilities to its production line, which will take the total cold rolling capacity of the company to 1mn tons per annum.
An analyst at Global Securities said that after two days rally of more than 900 points, the local bourse witnessed a volatile session as index remained directionless throughout the day, hovering within a range of 350 points, settling with a negative change of 110 points. Trading volumes for the benchmark index declined by 17 percent as cautious investors remained sidelined being skeptical about further direction of market near its resistance level of 50,000 points. Major support towards the index came from Engro (up 3.68 percent) and MARI (up 5.0 percent), contributing 94 points where former surged over announcement of an unexpected dividend by one of its subsidiary whereas latter surged over potential divestment of Government of Pakistan's share in the company. ISL (up 5.0 percent) closed at its upper circuit as euphoria for company's expansion continued for the third day. HBL (down 0.71 percent) and HUBC (down 1.1 percent) remained the major laggard to drag index down by 27 points over possible forewing selling.