Market Daily: KSE 100 Index closes up 27.43 points, settles at 42,772.25

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LAHORE: What an anticlimax to such a brilliant run-up from the 22nd of May, as market momentum fizzled out in the wake of concerns on rising CAD, depleting Forex reserves, increasing the cost of doing business and highly fluid and unpredictable politics. A follow-through move would have contributed towards lifting the overall sentiment and allaying pessimism. Volume and Turnover for the 100 Index came down along with risk appetite (-17 per cent and -30 per cent on d/d basis) perhaps amid concerns arising from heavy selling from FIIs in the previous session. Market activity was mostly confined to Financials (28 per cent of total turnover; down 23.1 per cent on d/d basis) Materials (25.7 per cent of total turnover; down 44.7 per cent on d/d basis) and Utilities (16.6 per cent of total turnover; down 11 per cent on d/d basis). Within these sectors FABL (9.8 per cent of total turnover), UBL (4 per cent of total turnover), BAHL (3.6 per cent of total turnover), DGKC (4.2 per cent of total turnover), FCCL (4 per cent of total turnover) and SNGP (12.6 per cent of total turnover) managed to garner investor interest. The day ended on a flattish note with the 100 Index closing up 27.43 points (+0.06 per cent) at 42,772.25

Today’s mix performance came amid gains in Utilities (+1.20 per cent), Financials (+0.50 per cent) and Health Care (+0.14 per cent) while Consumer Staples (-1.89 per cent), Consumer Discretionary (-0.50 per cent) and Materials (-0.48 per cent) weighted down on market performance. Contribution to upside came from HUBC (+1.9 per cent), SNGP (+2.12 per cent), KAPCO (+1.09 per cent), MCB (+1.34 per cent), BAHL (+1.37 per cent), NBP (+2.81 per cent) and SEARL (+3.1 per cent) while NESTLE (-5 per cent), KTML (-2.32 per cent), THALL (-1.38 per cent), LUCK (-1.21 per cent), ENGRO (-0.66 per cent) and DAWH (-1.34 per cent) weighed down on market performance. On the political front, PML-N politician Nawaz Sharif has claimed that the NAB references against him are byproducts of him filing a high treason case against former military dictator Pervez Musharraf. Moreover, DGKC has completed the installation of Pakistan’s largest cement plant at Hub, Baluchistan.

Market participation for the 100 Index declined to 76.69mn shares (-16.9 per cent on d/d basis). Major contribution to total market volume came from FABL (-0.08 per cent), PAEL (-0.75 per cent) and FCCL (-0.43 per cent) churning 32.1mn shares out of the All Share volume of 131.33mn shares. Daily traded value for the 100 Index declined to USD 38.55mn from USD 54.93mn in the previous session (-29.8 per cent on d/d basis); SNGP (USD 4.87mn), FABL (USD 3.79mn) and OGDC (USD 2.25mn) were among top contributors from traded value perspective. Major contribution to the 100 Index upside came from HUBC (+1.90 per cent), PAKT (+4.83 per cent), MCB (+1.34 per cent), BAHL (+1.37 per cent) and NBP (+2.81 per cent) adding 102 points. On the flip side, LUCK (-1.21 per cent), AICL (-4.77 per cent) and ENGRO (-0.66 per cent) took away 44 points. The 100 index is 13 per cent above its 52-week low of 37,736.73 reached on December 12, 2017 and 19 per cent below its 52-week high of 53,127.24 touched on May 25, 2017.

Technically speaking, the day ended on an indecisive note amid thin participation with a Doji like candle having a long upper shadow. The Index is still trading above 10EMA (42,704) / 50 per cent retracement (42,440) support. However, the 100 Index risks entering a Death Cross (negative crossover of 50/200EMA) . Next resistance is 20EMA (43,394) and previous weeks high (43,595).