Market Daily: PSX sheds 294 points, starts the week in red

Market closes in red zone amid lower oil prices and external account woes

LAHORE: Pakistan Stock Exchange (PSX) started yet another week in the red as indices kept shedding points from the very beginning. With fragile global markets and noisy political scenario, the market lacked incentive for investor sentiment.

KSE 100 index dropped 347.55 points to 43,461.25 intraday and concluded the session with a loss of 0.7 per cent or 294 points at 43515.08. The KMI 30 index depreciated to day’s low of 417.70 points before it ended 157.03 points in the red. The KSE All Share Index was lower by 182.88 points with 141 advancers and 194 decliners.

Meanwhile, WTI oil prices trended below the $60/bbl mark, which kept oil stocks under pressure. Investors also remained concerned on mounting external account pressure and depleting foreign exchange reserves. Since Jun 2017, reserves held by are down by $ 3 billion to $ 13 billion.

The first listing of the year, Matco Foods Limited, shall commence trading on Tuesday. The company has been listed under the Food and Personal Care Products sector with the symbol MFL.

Activity during the day remained lacklustre as trading volume and value were down 5 per cent and 14 per cent, respectively.

Stocks including UBL (-3.2 per cent), MCB (-3.4 per cent), HBL (-2.2 per cent), SNGP (-3 per cent) & BAFL (-2.3 per cent) withheld 220 points from the index whereas stocks including DAWH (+3.6 per cent), BAHL (+0.7 per cent), SHFA (+5 per cent), TRG (+2.1 per cent) & NCPL (+5 per cent) added 69 points to the index.

On the sector front, Commercial Banks and Oil & Gas Exploration (E&Ps) cumulatively withheld 207 points from the index.

The market volumes were recorded at 215.28 million with Azgard Nine Limited (ANL -5.30 per cent)  a leader by miles. The script had 34.26 million shares traded followed by TRG Pakistan Limited (TRG +2.06 per cent) which was far behind with 12.16 million shares exchanged.

ICI Pakistan Limited (ICI -1.14 per cent) disclosed phase I of its 150,000 tons per annum (TPA) expansion project at its soda ash manufacturing facility in Khewra had successfully been commissioned and commenced operations.

Consequently, as a result of the addition of this 75,000 TPA expansion in phase 1 at its soda ash manufacturing facility, total capacity at the plant now stood at 425,000 TPA.

Board of Clover Pakistan (CLOV) gave approval for due diligence for acquisition/merger with Hascombe Business Solutions (Pvt) Ltd (HBSL), which is the distributor of Ricoh International B.V., the supplier of Ricoh branded photocopier, printers, projectors, interactive boards, and other petroleum-related equipment. HSBL is also engaged in marketing and distribution of office automation products, fuel dispensers, vending machines and servicing of cleaning and up keeping of fuel station canopies and boards. CLOV is also exploring the possibility of entering into marketing and distribution of car care and related products.

Thatta Cement (THCCL) disclosed 2QFY18 financial results reporting earnings of Rs 96 million (EPS Rs 0.9), down 66 per cent YoY. Revenue of the company was down 36 per cent to Rs 724 million whereas gross profit was down 44 per cent to Rs 204 million. Gross margin was down from 32 per cent to 28 per cent due to cost pressures.

Technically speaking, the KSE 100 index failed to build upon the late session recovery witnessed on Friday and closed below 20EMA (43,695) on thin participation. For now, immediate resistance is 43,900 (intraday high) while it is expected that 43,025 (200EMA) would be the next possible support.

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