Index sheds 87 points in dull trading KARACHI: The KSE-100 index drifted lower by 86.86 points (0.20 percent) to close at 42,324.94 points on Friday. Trading remained listless in the first half with investors’ undecided about the direction of the market.
Yet, near the close of the second half, most decided to take profit ahead of the week end, uncertainty over the outcome of the Supreme Court hearing on the Panama Leaks case to resume on 30th; the fluid situation on LoC and relentless selling by foreign investors.
Volume of trade remained almost the same as the day before at 491 million (407m) shares, while trading value declined to Rs12.3 billion, from Rs15.6bn as second and third- tier stocks dominated trading. JPGL, PIAA, BOP and SMBL cumulatively contributed 140m shares to the aggregate turnover of 490m.
Cement sector came into the limelight due to retreating coal prices, while E&P remained on the back burner. According to Intermarket Securities, HBL lost 1.18pc, LUCK lost 1.10pc, TRG 3.14pc, OGDC 0.55pc and MARI 1.81pc, taking away 86 points altogether. PSEL moved up my 3.77pc, HASCOL by 3.09pc and MCB by 0.52pc, adding 39pts. From a sector perspective Consumer Discretionary and Consumer Staples staged a buoyant session while Telecommunication, Health Care and Industrial took their toll on the market sentiment.
Analyst Ahsan Mehanti at Arif Habib Corp. commented that the stocks closed lower amid pressure on oil stocks after crude prices slip near $45/barrel. Concerns over rising government debt, rupee depreciation, dismal auto sales data for Oct’16, foreign outflows and weak global equities played a catalyst role in institutional profit taking in the post earnings season.
Analyst Abra Juma at Global Securites said HBL, LUCK and OGDC remained the major culprits in dragging the index down possibly owing to major foreign selling amid depreciation of the local currency against greenback after Yellen remarked that the increase in Fed interest rates could come relatively sooner.