Market Daily: KSE 100 closes down 209.72 points at 44,536.91

LAHORE: Given the risks presented by Pakistani elections coinciding with an increasingly dicey economic backdrop, market chatter is tilting in favor of a reversal in Pakistani stocks. However, the same uncertainty has reduced risk appetite thus forcing market participants to stick to sideline as evident from recent fall in market participation. Volume and Turnover in today’s session came down once again (-6.7 per cent and -30.9 per cent respectively on d/d basis) as skittish investors opted to refrain from buying at current levels. Market volume shot up in few selected names mainly UNITY (12.1 per cent of turnover), DGKC (8.6 per cent of turnover), BOP (7.7 per cent of turnover), UBL (7.6 per cent of turnover), TRG (4.5 per cent of turnover) and PSO (+3.6 per cent of turnover). Outside the 100 Index, turnover in STCL (4.6 per cent of turnover) and FFL (4.3 per cent of turnover) stood out like a sore thumb. The day ended on a negative note with the 100 Index closing down 209.72 points (-0.47 per cent) at 44,536.91.

Major drag to the 100 index decline came from Consumer Staples (-1.27 per cent), Financials (-1.08 per cent) and Energy (-0.25 per cent) amid profit taking in PAKT (-4.97 per cent), COLG (-4.95 per cent), UBL (-3.1 per cent), HBL (-1.75 per cent), BAHL (-1.25 per cent), MCB (-0.25 per cent), PPL (-0.56 per cent) and OGDC (-0.47 per cent). Additional drag came from select Materials (-0.24 per cent) and Consumer Discretionary (-0.18 per cent) names, thanks to mini selloffs in LUCK (-1.15 per cent) and KTML (-2.76 per cent). On the flip side, Utilities (+0.21 per cent) and select names for Materials contributed positively through positive price action in HUBC (+0.56 per cent), DAWH (+0.99 per cent) and EFERT (+0.47 per cent). In related news, PSX has started the process for acquiring a new trading platform as the bourse seeks to shortlist and sign the contract in September. However, implementation can take about 6 months. Meanwhile, ENGRO has decided to reappoint Ghias Khan as CEO for a term up to and including the date of next elections of directors of the company. For the outgoing week, the 100 Index lost -1,005.87pts (-2.21 per cent) with main contribution to downside coming from HBL (-7.51 per cent), UBL (-6.88 per cent) and ENGRO (-3.09 per cent) taking away 414pts.

Market participation for the 100 Index declined to 68.78mn shares (-6.7 per cent on d/d basis). Major contribution to total market volume came from BOP (+2.34 per cent), UNITY (-3.85 per cent) and STCL (+2.43 per cent) churning 44.65mn shares out of the All Share volume of 139.67 shares. Daily traded value for the 100 Index declined to USD 28.90mn from USD 41.84mn in the previous session (-30.9 per cent on d/d basis); UNITY (USD 3.49mn), DGKC (USD 2.47mn) and BOP (USD 2.21mn) were among top contributors from traded value perspective. Major contribution to the 100 Index downside came from UBL (-3.10 per cent), HBL (-1.75 per cent), PAKT (-4.97 per cent), LUCK (-1.15 per cent) and COLG (-4.95 per cent) taking away 170pts. The 100 index is 18 per cent above its 52-week low of 37,736.73 reached on December 12, 2017 and 16 per cent below its 52-week high of 53,127.24 touched on May 25, 2017.

Technically speaking, the 100 Index extended its slide from earlier this week in today’s session amid thin participation. A negative cross-over of short term moving averages (10-20EMA) and a close below 10WEMA is likely to take its toll on market direction. Next support is 20WEMA (44,169) and 200EMA (43,784).

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