LAHORE: Following a weak start the KSE 100 index plunged into an abyss and slipped throughout the first session, moving past all technical supports like a hot knife through butter. As selling pressure turned into panic, the KSE 100 index breached through 200EMA (43,792) and 38 per cent retracement (43,562) of the rally that started on December 19, 2017.
However, luck favours the brave and the oversold market (RSI 28.37) managed to find a foothold and staged a reversal. Off its lows, the KSE 100 index was able to recoup 408 points from 43,386.63 to close down -271.96 points (-0.62 per cent) at 43,795.
While market volume remained flattish (+0.74 per cent) turnover for the KSE 100 index shot up 28 per cent on day on day (DoD) basis. Heavy activity was seen in materials (32.44 per cent of total turnover – up 41 per cent DoD), energy (25.94 per cent of total turnover – up 76.7 per cent DoD) and utilities (13.37 per cent of total turnover – up 55.3 per cent DoD) amid sector specific triggers. Heavy participation was seen in POL (9.3 per cent of turnover), DGKC (7.2 per cent of turnover), OGDC (6.8 per cent of total turnover), PPL (5.2 per cent of total turnover), SNGP (5.5 per cent of total turnover), SSGC (4.8 per cent of total turnover), ISL (3.6 per cent of turnover) and LUCK (3.5 per cent of turnover).
Major drag to KSE 100 index decline came from healthcare (-2.14 per cent), utilities (-1.85 per cent), materials (-1.01 per cent), industrials (-0.77 per cent) and consumer discretionary (-0.76 per cent). Cements were subjected to torture after coal prices shot up north of $100 (Richard Bay coal) amid MoM decline in cement dispatches, weak outlook for demand due to Ramadan and new capacities coming online.
Subsequently, LUCK (-1.39 per cent), MLCF (-4.43 per cent), CHCC (-4.73 per cent), PIOC (-4.99 per cent) and BWCL (-2.04 per cent) closed deep into red. Despite initial euphoria, E&P closed on a disappointing note (only POL +0.34 per cent managed to close in green) despite WTI prices reversing Tuesday’s slump and surpassing $71 per barrel.
Market participation for the KSE 100 index remained flattish at 80.67 million shares (+0.74 per cent DoD). Major contribution to total market volume came from FDIBL (+33.22 per cent), ICIBL (+56.82 per cent) and TRIBL (+46.86 per cent) churning 31.07 million shares out of the All Share volume of 191.85 million shares.
Daily traded value for the KSE 100 index increased to $54.91 million from $42.91 million in the previous session (+28 per cent DoD); POL ($5.11 million), DGKC ($3.94 million) and OGDC ($3.75 million) were among top contributors from the traded value perspective. Major contribution to the KSE 100 index downside came from SNGP (-4.80 per cent), LUCK (-1.39 per cent), MLCF (-4.43 per cent), PAKT (-2.77 per cent) and INDU (-3.01 per cent) taking away 97 points.
On the flip side, MCB (+1.95 per cent) and BAHL (+1.00 per cent) added 44 points. The KSE 100 index is 16 per cent above its 52-week low of 37,736.73 reached on December 12, 2017, and 18 per cent below its 52-week high of 53,127.24 touched on May 25, 2017.
Technically speaking, the KSE 100 index was able to foster a strong reversal off its intraday lows as market bulls decided to stage a comeback and lifted the index off its lows (408 points recovery). A negative cross-over of moving averages (10/50EMA), thin participation and 20WEMA (44,133) may keep animal spirits in check.
