The Karachi Stock Exchange (KSE) started on a strong positive note on Thursday and the benchmark KSE-100 index hit the highest-ever 13,613.26 points intra-day high level. However, it could not sustain its momentum due to some technical resistance at this level.
The KSE-100 finally closed at 13,462.46 points level, down by 14.78 points while KSE-30 index lost 69.82 points and closed at 16,861.43 points level. Trading activity was better as the ready market volume increased to 428.656 million shares as compared to 425.442 million shares traded a day earlier. The futures market turnover also increased to 77.334 million shares against 76.670 million shares that changed hands previously.
The overall market capitalisation declined by Rs 5 billion to Rs 3.906 trillion. Trading took place in 410 scrips, out of which 186 scrips closed in positive column and 180 scrips closed in negative column, while the value of 44 scrips remained unchanged.
The fertiliser sector remained active as Fauji Fertiliser Bin Qasim was the star performer of the day with 50.819 million shares and the scrips surged by Rs 1.65 to close at Rs 38.70 while Engro Chemical gained Rs 4.50 to close at Rs 252.00. TRG was the second volume leader with 31.474 million shares and the scrip gained Rs 0.50 to close at Rs 13.70.
Profit-taking was witnessed in the banking sector as Bank Al Falah, NBP and BoP lost Rs 1.45, Rs 3.25 and 2.45 to close at Rs 57.50, Rs 257.20 and Rs 113.40, respectively, whereas Askari Bank gained Rs 0.55 and closed at Rs 101.50.
A mixed trend was witnessed in the cement sector as DG Khan Cement and Pakistan Cement declined by Rs 2.40 and Rs 0.90 to close at Rs 116.10 and Rs 15.15 respectively, while Lucky Cement surged by Rs 0.15 to close at Rs 122.55.
Colgate Palmolive and Pak Services were the highest gainers which gained Rs 22.00 and Rs 18.50 to close at Rs 462.00 and Rs 407.00 respectively while Siemens and Rafhan Maize were the highest losers losing Rs 76.00 and Rs 44.00 to close at Rs 1,480.00 and Rs 2,350.00 respectively.
Muhammad Sohail, a senior analyst and director, Equity Broking, JS Global Capital, said the market closed in negative after opening over 100 points plus as the investors were confused about the sustainability of the market at the highest ever levels. He said the market entered in consolidated phase after making new records and reaching all time high levels. The fertiliser sector performed well as this sector remained inactive and the investors took interest in it. However, he said that investors are still focusing on the banking sector as they have more expectations in this sector.
Ahsan Mehanti of Shehzad Chamdia Securities said the market started on a strong positive note and reached its all-time highest level, while late selling created pressure in the market and pushed the index in negative zone. It witnessed technical resistance at its intra-day highest level of 13,613.26 points. The market witnessed technical correction and finally closed in negative with a net loss of 14.78 points. The fertiliser sector performed well on the back of a positive report by a local brokerage house.
The SCRA balances has declined to $874 million which shows that foreign investors were offloading their holdings. He said that the privatisation of PSO is once again in the doldrums as the Attock Group has filed a petition in the Supreme Court against the Privatisation Commission and investors took it as a negative sign.