Market Daily: KSE settles 323.10 points down amidst profit taking

LAHORE: Inertia from Tuesday helped stage a buoyant open as the KSE 100 index touched an intraday high of 46,004 (0.44 per cent or 202 points) within the first hour, however profit taking took centre stage and the index gradually slipped into red and ended up closing below Tuesday’s low amid a rise in market participation.

The KSE 100 index marked an intraday high of 46,003.96 after a gain of 202.23 points before it slipped 377.78 points to its low of 45,423.95. The index settled down by 323.10 points to 45,478.63. The KMI 30 index after an appreciation of 511.72 points depreciated 678.49 points. The index closed down 536.28 points at 77,531.96. The KSE All Share Index shed 178.63 points with 118 advancers and 231 decliners.

The market volumes were recorded at 156.04 million for the session, meanwhile, volume and turnover for the KSE 100 index expanded on daily basis – up 15.7 per cent and 6.9 per cent respectively amid heavy participation in materials (45.1 per cent of total turnover), energy (17.2 per cent of total turnover) and financials (11.6 per cent of total turnover).

Among materials ENGRO (8.9 per cent of total turnover), EFERT (7.7 per cent of total turnover), DGKC (7.4 per cent of total turnover), ISL (4.5 per cent of total turnover) and FCCL (4.2 per cent of total turnover) contributed the most towards heavy investor participation. Utilities (9.7 per cent of total turnover) stood out like a sore thumb, all due to investor’s appetite for both the gas utilities, with SSGC (+0.74 per cent) and SNGP (-1.93 per cent) churning 6.2 per cent of total turnover. Towards the end, the KSE 100 index gave in to charging bears and closed down -323.10 points (-0.71 per cent) at 45,478.63.

Market bulls lost their mojo after coming face to face with 10EMA (46,004 as of Tuesday’s close) and the KSE 100 index retraced its footsteps as a dearth of market-moving triggers and the recent increase in political uncertainty forced market watchers to take a break and refrain from taking exposure in risky assets.

Major drag to the KSE 100 index came from financials (-1.11 per cent), materials (-0.73 per cent) and consumer discretionary (-0.71 per cent) amid profit taking in HBL (-3.20 per cent), MCB (-1.01 per cent), BAHL (-1.40 per cent), LUCK (-1.33 per cent), ENGRO (-1.05 per cent), DGKC (-2.70 per cent), ISL (-2.65 per cent) and PSEL (-4.31 per cent).

On the flip side, Health Care (+1.01 per cent) managed to stay green with ABOT (+3.89 per cent) condemned to hold up the sky for eternity.

Market participation in the KSE 100 index increased to 85.23 million shares (+15.6 per cent on daily basis).

Major contribution to total market volume came from KEL (-1.41 per cent), BOP (+2.03 per cent) and FCCL (-0.67 per cent) churning 28.21 million shares out of the All Share volume of 156.04 million shares. Daily traded value for the KSE 100 index increased to $51.48 million from $48.54 million in the previous session (+6.05 per cent on daily basis); OGDC ($4.73 million), ENGRO ($4.59 million) and EFERT ($4.01 million) were among top contributors from traded value perspective.

Major contribution to the KSE 100 index downside came from HBL (-3.20 per cent), LUCK (-1.33 per cent), PSEL (-4.31 per cent), ENGRO (-1.05 per cent) and DGKC (-2.70 per cent) taking away 180 points. On the flip side, ABOT (+3.89 per cent) and EFERT (+1.24 per cent) added 23 points. The 100 index is 21 per cent above its 52-week low of 37,736.73 reached on December 12, 2017 and 14 per cent below its 52-week high of 53,127.24 touched on May 25, 2017.

K-Electric Limited (KEL -1.41 per cent) was investors top pick who exchanged 11.23 millions shares of the script. The Bank of Punjab (BOP +2.03 per cent) followed with traded volumes of 8.58 million. The bank is expected to declare financials for the year 2017 on April 25.

Fauji Cement Company Limited (FCCL -0.67 per cent) was next with volume of 8.40 million shares. The company announced commissioning of a Waste Heat Recovery Power Plant for Line – I and Wartsila Captive Power Plant. This new plant has a capacity of 9MW in addition to the already installed 12 MW.

Meanwhile, United Bank Limited (UBL -0.16 per cent) with an extraordinary item announced earnings per share of Rs 2.16 compared to Rs 5.93 in the same period last year.

Technically speaking, the KSE 100 index closed below the coveted 20EMA and trend line support on daily charts. It is expected that the bears will explore further downside and test next support at 44,800. (10WEMA).

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