Karachi Stock Exchange (KSE) witnessed a dull session Tuesday and the benchmark KSE-100 index fell by 50 points to close at 35,447 points. The market opened on a positive note and the cement sector started leading the rally but profit-taking commenced after the news came in the market that Iran and six world powers sealing a historic accord to curb the Islamic Republic''s nuclear programme in return for the lifting of sanctions, bringing pressure on the international oil price.
Ahsan Mehanti, analyst at Arif Habib said stocks closed lower on late session profit-taking in overbought scrips across-the-board. Oil stocks battered after plunge in WTI crude prices near $51 on reports of Iran nuclear deal and Greek Euro zone bailout, he added. He said rising political uncertainty, limited foreign interest played a catalytic role in bearish activity ignoring strong economic outlook owing to record forex reserves and $18.5 billion home remittances data for Jul-Jun''15.
During the intraday trading index juggled in red and green zone touching intraday 35,724 points highest and 35,370 points lowest levels. Traded volume increased by 21 percent as some 417 million shares were traded at ready counter compared to 345 million a day earlier. Market capitalisation declined by Rs 32 billion to Rs 7.602 trillion down from Rs 7.634 trillion. Trading took place in 380 companies, of which 210 closed higher, 142 declined, while share prices of some 28 companies remained unchanged. According to JS, due to Iran news oil sector came under pressure and leading scrips closed down on negative note. In the banking sector, BankIslami Pakistan Ltd closed at its upper circuit.
In the energy sector, KEL +0.3 percent remained under pressure as Senate standing committee is reviewing the utility''s privatisation, while NEPRA remains in a fix over taking action against the company. In the fertiliser sector, FFBL +4.7 percent continued its euphoric growth on optimistic expectation of investors towards its upcoming financial result. Moving forward we expect the market to remain volatile before Eid holidays, JS said. Mohammad Rizwan of Topline Securities said that oil stocks remained under pressure during the day as removal of economic sanctions from Iran and Iran-Nuclear deal could lead to oil oversupply in the international market.
KSE-100 Index down by 0.14 percent to close at 35447. Major contribution was witnessed from oil stocks like OGDC, PPL and PSO declined by 4.90 percent, 3.19 percent and 3.25 percent respectively. While, SSGC and SNGP closed at upper circuit as government announced hike in gas prices after Eid Major activity was witnessed in Dewan Salman, Azgard Nine, Byco Petroleum, K-Electric, and Peace (Pak) Ltd, with traded volume 32 million, 24 million, 20 million, 19 million and 16.28 million, respectively.
Colgate Palmolive and Murree Brewery were the top gainers with Rs 47.00 and Rs 42.75 to close at Rs 1,602.00 and Rs 1,005.00, respectively. Rafhan Maize and Bata (Pak) were the top losers with Rs 200.00 and Rs 55.50 to close at Rs 10,000.00 and Rs 3,650.00, respectively.
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