The Karachi share market on Friday started on a positive note and the KSE-100 index hit 13,517.61 points intra-day high. However, selling pressure, mainly in banking and cement sectors, pushed the index down in the negative zone and, at one time it reached the 13,301.68 points intra-day low before closing at 13,438.47 points, losing 23.99 points.
The KSE-30 index also lost 108.78 points to close at 16,752.65 points level. The market witnessed dull trading and the ready market volume declined to 271.261 million shares from 428.656 million shares of Thursday. The futures market turnover stood at 62.834 million shares against 77.334 million shares.
Market capitalisation declined by Rs 9 billion to Rs 3.897 trillion. Trading took place in 364 scrips, of which 174 scrips closed in negative column and 153 closed in positive column while the value of 37 scrips remained unchanged. Fauji Fertiliser was the volume leader with 17.950 million shares. However, the scrip lost Rs 0.85 to close at Rs 37.85.
Banking sector witnessed profit-taking and BoP, Askari Bank, MCB, NBP and UBL declined by Rs 0.65, Rs 1.40, Rs 3.30, Rs 1.20 and Rs 5.80 to close at Rs 112.75, Rs 100.10, Rs 361.20, Rs 256.00 and Rs 224.25 respectively.
Cement sector also witnessed selling pressure and DG Khan, Lucky, Fauji and Maple Leaf lost Rs 0.70, Rs 1.10, Rs 0.40 and Rs 0.15 to close at Rs 115.40, Rs 121.45, Rs 18.95 and Rs 23.35 respectively.
In E&P sector, OGDC, POL and PPL declined by Rs 0.40, Rs 3.45 and Rs 2.50 to close at Rs 122.60, Rs 339.50 and Rs 262.00 respectively. PTCL gained Rs 0.70 to close at Rs 54.00 however TRG Pakistan lost Rs 0.45 to close at Rs 13.25.
Bosicor Pakistan, National Refinery and Pak Refinery surged by Rs 0.05, Rs 17.15 and Rs 8.50 to close at Rs 16.90, Rs 360.60 and Rs 241.00 respectively, while Hub Power gained Rs 0.40 to close at Rs 37.40.
Rafhan Bestfoods and Pak Services were the highest gainers which gained Rs 42.50 and Rs 20.35 to close at Rs 892.50 and Rs 427.35 respectively, while Wyeth Pak and IGI Insurance were the highest losers which lost Rs 101.25 and Rs 19.00 to close at Rs 1923.75 and Rs 382.00 respectively.
Ahsan Mehanti at Shehzad Chamdia Securities said that foreign investor opted profit taking on available margins mainly in the banking sector. The SCRA balances declined to $861 million, showing a massive outflow of foreign investment. The proposal for imposition of capital gains tax on banks was another reason, which invited selling.
PSO's privatisation issue also created uncertainty and the investors offloaded relevant stocks. Uncertainty on political front was also a reason due to which the investors opted profit taking.
Hasnain Asghar Ali at Aziz Fidahusein Securities said that the clouds of last-day phobia kept the bright sunshine of prosperity and positive economic outlook subdued. Low volume strength and capped CFS allowed the bearish forces, active from Wednesday, to exploit the situation as the trading portfolios carrying vast number of stocks came in for readjustment. Across-the-board offloading thereby allowed the tempting value to emerge and the opportunity was well capitalised by leading players. A
fter making a low of 13,303, down by 159 points, with the support of UBL (book builder for GDR is in process, rates are likely to stay steady) and PTCL and short covering factor, the index registered handsome recovery.
Technically, the index is likely to find intra-day support around 13,290-13,296, while the overhead resistance stays at 13,550-13,557. With June closing fast approaching, portfolio adjustment and streamlining will be witnessed, creating volatility in the market. With CFS capped, optimistic are likely to have a tough time in digesting the float in the currently over-valued stocks. It is, therefore, recommended to strictly adhere to the stocks trading at low multiple and are likely to grow with the growing economy.