Selling from funds keeps market under immense pressure
Ghulam Raza Rajani
KARACHI: Market observed an absolutely bearish day. An across the board selling was seen as more than 65 per cent of scrips ended in red zone. Massive decline MoM in cement dispatches kept cement sector in red zone. Ongoing selling from mutual fund forced market to end depressively.
The benchmark KSE-100 index closed
lower by 299.76 point to close at 39,303.11 points. KSE All Share Index decreased by 188.22 to end at 28,678.83, KSE 30-Index declined by 162.09 points to conclude at 18,812.00, whereas KMI 30-Index dipped by 338.16 points to finish the day at 66,303.31 level.
Fahad Qasim at Topline Securities said it was an unsatisfactory session for the benchmark index as a lack of any major triggers eroded investors' confidence. Fears of an economic slowdown continue to feed negativity in the market. Resultantly, the index hit a low of 38,820 level, but recovered within the final hours of the trading session to only lose 300 points (or -0.76%), closing at 39,303 level. During the trading session INIL announced that it had been awarded a contract for the supply of 6000KM of steel and Polymer API line pipes amounting to Rs3.3bn, by SNGPL. This led the scrip to close at its upper cap of Rs151.6. Pakistan Cement dispatches declined 14% MoM during the month of Nov, 2018, as per our channel checks, which had a negative effect on the sector, led by PIOC (-5%), ACPL (-3.7%) and MLCF (-3.6%). Investor participation declined today as traded volumes decreased by 30% to 138mn, while traded value regressed by 39% to US$50mn.
The advance to decline ratio in the broader market remained in favor of bears. Out of 358 scrips, 103 scrips advanced, 231 declined while the value of 24 scrips remained intact.
The ready market volume decreased by 29.49 per cent to 138.104 million shares as compared to 195.853 million shares traded on last trading day.
Lotte Chemical Limited topped the list of actives, higher by Rs 0.18 at Rs 18.85 on 10.63 million shares, followed by Bank of Punjab increased by Rs 0.05 at Rs 13.11 on 9.90 million shares and Maple Leaf Cement Factory declined by Rs 1.39 at Rs 42.45 on 8.11 million shares.
Other actives were K-Electric Limited descended by Rs 0.15 at Rs 5.32 on 8.08 million shares and Pakistan Elektron Limited dipped by Rs 0.65 at Rs 26.03 on 7.26 million shares.
The overall market capitalization decreased by Rs 50.995 billion to Rs 7.8752 trillion against Rs 7.9262 trillion observed on last trading day.
Philip Morris Pakistan Limited and Hinopak Motor Company Limited remained the top gainer by Rs 131.70 and 27.48 to close at Rs 3,284.88 and Rs 577.11 respectively, while Nestle Pakistan Limited and Bata Pakistan Limited was the major loser which lost Rs 341.00 and Rs 38.00 to close at Rs 8,700.00 and Rs 1,542.00 respectively.