Market Daily: Indices continue to shed points

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LAHORE: The Pakistan Stock Exchange (PSX) kept shedding gains all here on Wednesday. The KSE 100 was range-bound for most of the day before the sustained pressure in the last trading hour led to a 0.6 per cent decline at close.

Market participation for the KSE 100 index declined to 45.5 million shares (-26 per cent on day on day basis). A major contribution to total market volume came from MFL (+4.6 per cent), PIAA (+4.5 per cent) and UNITY (-3.7 per cent) churning 28.6 million shares out of the All Share volume of 142.4 million shares. Daily traded value for the KSE 100 index declined to $30.9 million from $45.3 million in the previous session (-31.8 per cent on daily basis); MFL ($3.6 million), AGP ($3.4 million) and HBL ($3.3 million) were among top contributors from the traded value perspective. Major contribution to the KSE 100 index downside came from HBL (-1.3 per cent), PAKT (-5.0 per cent), LUCK (-1.5 per cent), ENGRO (-1.3 per cent) and MLCF (-4.2 per cent), together taking away 137pts. On the flipside, UBL (+0.9 per cent) added 18pts. The KSE 100 index is 15 per cent above its 52-week low of 37,736.73 points reached on December 12, 2017, and 18 per cent below its 52-week high of 53,127.24 points touched on May 25, 2017.

The KMI 30 index traded 506.60 points in the red before ending the session down 446.32 points at 73,835.21. The KSE All Share Index shed 216.52 points as 230 scripts declined and only 102 advanced.

After its recent rally, the cement sector came in for heavy profit taking with FCCL (-3.3 per cent) and MLCF (-4.2 per cent) facing the brunt. KOHC (+1.8 per cent) – on which our research raised its TP to Rs245 share here on Wednesday – was a notable contrarian mover.

The market activity went back towards its slumber, with volumes declining by 26 per cent on day on day basis. However, new listings at the bourse MFL and AGP again attracted strong investor interest, both closing at their upper circuits.

Meanwhile in the low market news of another potential IPO sparked some interest. The PSX sent a notice seeking public comments on the draft prospectus of At-Tahur Limited, known for their brand Prema Milk. The ordinary shares of At-Tahur are being issued at Floor Price of Rs20.00 per share which is at a premium of Rs10.00 per ordinary share to the face value of Rs10.00 per ordinary share. If successful, this would be the third IPO of the year and second from the food sector.

The market volumes narrowed down to 142.26 million from 177.45 million in the previous session. Matco Foods Limited (MFL +5.00 per cent) ruled the chart with 12.78 million.

The company caught investors interest after media reports stated that it signed an agreement for the supply of 20,000 tonnes per annum rice glucose manufacturing plant with Beijing Meckey Engineering Co. This expansion is expected to increase total production capacity to 30,000 tonnes rice glucose and 3,000 tonnes rice protein per annum, respectively.

A notice by PSX stated that the National Accountability Bureau Lahore has authorised an inquiry against Directors and Owners of Azgard Nine Limited (ANL -5.61 per cent and Agritech Limited (AGL -11.05 per cent). Both the scripts were floored following it.

Sanofi-Aventis Pharmaceutical Pakistan Limited (SAPL -5.00 per cent) depreciated to its floor value after the company reported a 1.26 per cent decline in net profit for the year 2017. The company reported per-share earnings of Rs104.32 against Rs105.65 last year.