Selling pressure sets in

Pakistan Stock Exchange (PSX) on Tuesday crossed 50,000 points historic level to hit 50,056.72 points intra-day high level, however, selling pressure in certain sectors pushed the index into negative zone at 49,629.40 points intra-day low. The index closed at 49,968.92 points level with an increase of 92.74 points. Foreign investors remained net sellers of shares withdrawing $4.7 million from the bourse.
Trading activity also remained low as the daily trading volumes declined to 509.514 million shares as compared to 600.370 million shares traded Monday. The market capitalisation decreased by Rs 11 billion to stand at Rs 9.977 trillion. Out of the total 432 active scrips, 208 closed in positive, 206 in negative while the value of 18 stocks remained unchanged.
K-Electric was the volume leader on second consecutive day with 71.407 million shares, however it lost Rs 0.17 to close at Rs 9.99. Aisha Steel Mills gained Rs 0.33 to close at Rs 22.01 with 48.873 million shares. Japan Power inched up by Rs 0.06 to close at Rs 7.09 with 18.913 million shares. Colgate Palmolive and Bhanero Textile were the top gainers with Rs 85.00 and Rs 41.28, respectively to close at Rs 1,790.00 and Rs 874.98. Nestle Pakistan and Bata Pak were the top losers with Rs 298.99 and Rs 138.40, respectively to close at Rs 9001.01 and Rs 4052.59.
Nabeel Haroon at JS Global Capital said that volatility prevailed in the market as the index, in spite of repeated attempts, failed to sustain above 50,000 level and closed 93 points higher at 49,969 level. Investor interest was seen in the cement sector as the sector gained to close (0.34 percent) higher than its previous day close. DGKC (+2.11 percent) and FCCL (+1.44 percent) were among the major gainers of the aforementioned sector. Fertilizer sector extended its previous day gain on the back of the news that ECC has authorised continuation of fertilizer subsidy scheme for FY17 and has also permitted export of 0.3 million tons of urea fertilizer till 28th April, 2017 without the subsidy that is being extended for local urea sales. FFBL (+0.40 percent) was among the top performers of this sector. Profit taking was witnessed in HCAR (-3.49 percent) as skeptical investors came in to book their profits a day before the automobile assembler''s third quarter financial result announcement.
An analyst at Global Securities said that the local bourse continued to extend its rally in a volatile session, crossing the landmark 50,000 points level soon after the opening bell. The index, however, succumbed to heavy selling pressure at the 50,000 level, falling to a day''s low of 49,622 points. The market started to recover after touching the day''s low and gradually inched back towards the 50,000 level, finally settling at 49,969 points by day''s end. The day''s top performer emerged as PSO (+5.00 percent) with a contribution of 52 points as investors likely anticipate strong earnings for the scrip in the upcoming result season. Other top performers emerged as BAFL (+5.00 percent), DAWH (+2.55 percent) and DGKC (+2.11 percent) with a cumulative contribution of 77 points. ISL (-5.00 percent) and its parent company INIL (- 5.00 percent) hit the lower circuit after ISL announced earnings of Rs 2.67/share during first half FY17, lower than street estimates. The major laggards emerged as NESTLE (-3.21 percent), HBL (-0.66 percent) and NML (-3.69 percent) with a cumulative erosion of 70 points.