Market Daily: KSE 100 index down 154.79pts, settles at 46,331.71

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LAHORE: After meandering through the red during most part of yesterday’s session the 100 Index closed down 154.79 points (-0.33 per cent) at 46,331.71.

Amid sharp contrast in volume (+44.2 per cent) and turnover (-10.8 per cent) on d/d basis, retail favorites dominated trading activity at the bourse, thanks to KEL (3.20 per cent) and EPCL (+3.97 per cent) for churning 46.6 per cent of the 100 Index volume. Overall it was a slow day with turnover in Energy falling down 36.7 per cent despite oil prices jumping to the highest in more than three years on concerns that escalating tensions in the Middle East could lead to conflict and disrupted supplies. Activity in Materials (38.3 per cent of total turnover), Financials (12.76 per cent of total turnover) and Consumer Discretionary (12.62 per cent of total turnover) was also subdued and eked out a fractional jump on d/d basis.

Major drag to the 100 Index performance came from Telecommunication (-2.67 per cent), Industrials (-0.93 per cent) and Consumer Staples (-0.82 per cent) as PTC (-2.67 per cent), MTL (-1.46 per cent), TRG (-0.76 per cent), PIBTL (-0.79 per cent), NESTLE (-2.64 per cent) and NATF (-2.95 per cent) closed in red.

Additional losses were seen in Financials (-0.53 per cent) and Materials (-0.41 per cent) on the back of declines seen in HBL (-2.28 per cent), BAHL (-0.85 per cent), FFC (-1.87 per cent) and LUCK (-1.08 per cent). PTC fell -2.67 per cent after announcing a dismal 1QCY18 result – down 13.87 per cent on YoY basis. HBL came under heavy selling pressure after an international broker downgraded the bank to ‘reduce’ and revised down their estimates for the next two years.

HCAR shot up to its upper circuit limit after recording its highest monthly sales ever (due to increased production capacity) in the month of March. In related news, government is considering ending subsidies and cutting sales tax on fertilisers as the nation’s finances come under increasing pressure before elections due to be held this summer. On the legal front, CJP has hinted at examining the recently announced amnesty scheme.

Market participation for the 100 Index increased to 153.29 million shares (+44.1 per cent on d/d basis). Major contribution to total market volume came from KEL (+2.77 per cent), EPCL (+4.26 per cent) and PIAA (+6.21 per cent) churning 93.19 million shares out of the All Share volume of 332.9 million shares. Daily traded value for the 100 Index declined to $56.69 million from $63.22 million in the previous session (-10.32 per cent on d/d basis); EPCL ($8.13 million), HCAR ($3.70 million) and KEL ($2.90 million) were among top contributors from traded value perspective.

Major contribution to the 100 Index downside came from HBL (-2.28 per cent), FFC (-1.87 per cent), LUCK (-1.08 per cent), NESTLE (-2.64 per cent) and BAHL (-0.85 per cent) taking away 149 points. On the flip side, UBL (+0.79 per cent), OGDC (+0.64 per cent) and HCAR (+4.55 per cent) added 45 points. The 100 index is 23 per cent above its 52-week low of 37,736.73 reached on December 12, 2017 and 13 per cent below its 52-week high of 53,127.24 touched on May 25, 2017.