Market Daily: KSE 100 sheds 210.36 points

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LAHORE: The Pakistan Stock Exchange (PSX) failed to maintain a positive streak as profit-taking witnessed in the banking and cement sector took its toll on the index. Both sectors cumulatively eroded 140 points from the index points. Consequently, the market closed at 43,408 index level, losing 210 points.

According to an international media report the State Minister for Finance Rana Afzal Khan has said the country may raise funds from global debt markets worth up to $2.50 billion. The government issued the same amount of debt in November 2017. The government is yet to take a final decision but dwindling foreign-exchange reserves continue to haunt the economy.

The KMI 30 index slashed 0.62 per cent or 455.82 points to end the day at 73,882.80 while the KSE All Share Index managed to stand its ground. The broader market index witnessed the rise of 30 per cent in traded volume, however, value remained flat. The advance to decline ratio remained at 1.12 as 184 stocks closed in the green zone and 164 in red zone.

The market volumes stroked 198.15 million a leap upwards from 152.16 million in the last session. Lotte chemicals (LOTCHEM) gained investors’ attention and remained top volume leader with traded volume of 32 million shares, as PTA-PX margins have improved. Fauji Foods (FFL) and Engro Foods (EFOODS) went up by 5 per cent and 2.3 per cent as market rumours suggests expected a rise in fresh milk prices. Analysts at Topline Securities believe that this is likely to reduce packaged-lose milk price differential, resulting in higher packaged milk consumption.

Fauji Foods Limited (FFL +4.99 per cent) followed with 12.80 million shares traded along with Nimir Resins Limited (NRSL +8.72 per cent), volume 12.71 million.

Meanwhile, large market capitalisation sectors also posted declines throughout the day. The commercial bank sector chipped off 0.57 per cent from its cumulative market cap. The oil and gas exploration sectors cap shed 0.29 per cent and the cement sectors market cap depleted by 0.92 per cent.

Among financials, HBL (-2.69 per cent) churned heavy volume, 12.69 per cent of total turnover, up 273.7 per cent on daily basis along with improved activity in UBL (7.08 per cent of total turnover – up 34 per cent on daily basis).

Dost Steel Limited (DSL +2.62 per cent) through a notice to the exchange put forward their financial projections for the ongoing financial year and four to come. The management expects to post a loss of Rs132.44 million in the FY18 and convert it into a profit of Rs216.79 million in the year 2019. By the end of the financial year 2022, the management expects an after-tax profit of Rs731.94 million.

Top 5 stocks including PAKT (+3.2 per cent), PPL (+0.8 per cent), EFUG (+4.1 per cent), DAWH (+0.8 per cent) and INDU (+1.4 per cent) added 55 points to the index gain, whereas stocks including HBL (-2.7 per cent), LUCK (-1.6 per cent), ENGRO (-1.2 per cent), HUBC (-1.4 per cent) & OGDC (-0.9 per cent) , withheld 172 points from the index.

Moreover, Engro Polymer and Chemicals Limited (EPCL) notified the exchange regarding financing structure of its expansion plan of PVC by 100k tons and debottlenecking by 50k tons, with a total estimated capex of the project is Rs7.6 billion, out of which Rs5.4 billion would be raised through right shares where share price of the proposed issue will not exceed Rs30 per share.

HUM Network Limited (HMNL) notified exchange about the incorporation of its wholly owned subsidiary HUM Mart Pvt. Limited, for which only board of director’s approval is remaining.

Technically speaking, trading within a tight horizontal channel the KSE 100 index succumbed to selling pressure and closed on a bearish note. Northbound moves are likely to face stiff resistance on move past 43,900 – 44,000 (44,044 previous week’s high). On the flip side, 43,000 is expected to provide immediate support.

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