LAHORE: Pakistan equity markets extended the bearish trend wherein the index fell by 107 points, stretching the decline in the index to 1760 points in the past 5 trading sessions. KSE‐100 index closed at 40,239 levels, losing 0.26 per cent in the trading session on 5 July.
The 100 Index traded below the close on 4 July through most part of the day as risk appetite remained low but value hunting managed to provide some support. Market Volume expanded further but traded value came down on d/d basis (+24.9 per cent and -10.6 per cent) as uncertainty in the Avenfield reference forced market participants to stick to the sidelines.
Materials dominated the trading activity (39.34 per cent of total turnover) along with Financials (16.26 per cent of total turnover) and Energy (13.58 per cent of total turnover). Within these sectors, DGKC (11.6 per cent of total turnover), UBL (5.1 per cent of total turnover) and PPL (3.6 per cent of total turnover) managed to draw value hunters out in the open. The day ended with the 100 Index closing down -106.87 points (-0.26 per cent) at 40,238.81.
Major drag to the market performance came from Consumer Staples (-1.90 per cent), Consumer Discretionary (-0.88 per cent), Health Care (-0.42 per cent), Energy (-0.31 per cent) and Financials (-0.18 per cent) amid selling pressure in NESTLE (-3.31 per cent), COLG (-4.68 per cent), INDU (-3.44 per cent), SHFA (-5 per cent), NRL (-4.96 per cent), PSO (-1.07 per cent), PPL (0.45 per cent), HMB (-3.33 per cent) and HBL (-0.40 per cent).
Moreover, NEPRA has decided in the matter of reconsideration request filed by the Federal Government regarding MYT petition of KEL and has marginally increased the tariff from Rs12.77 to PKR 12.817/kWh. In the end, The Sindh High Court has issued notices to the Customs department and deputy attorney general on a petition filed by M/s Altas Honda Limited against regulatory duty imposed on steel sheets and aluminium.
Market participation for the 100 Index increased to 93.33mn shares from 74.72mn in the previous session (+24.91 per cent on d/d basis). Major contribution to total market volume came from KEL (+9.46 per cent), PAEL (-1.10 per cent) and EPCL (+1.33 per cent) churning 42.42mn shares out of the All Share volume of 143.18mn shares. Daily traded value for the 100 Index declined to $34.59mn from USD 38.44mn in the previous session (-10 per cent on d/d basis); DGKC (USD 4.01mn), SNGP ($1.90 million) and PAEL ($1.83 million) were among top contributors from the traded value perspective.
Major contribution to the 100 Index downside came from NESTLE (-3.31 per cent), HUBC (-1.49 per cent), COLG (-4.68 per cent), INDU (-3.44 per cent) and SNGP (-2.21 per cent) taking away 108 points. On the flip side, LUCK (+2.94 per cent), KEL (+9.46 per cent) and PAKT (+3.72 per cent) added 84 points. The 100 index is 7 per cent above its 52-week low of 37,736.73 reached on December 12, 2017, and 15 per cent below its 52-week high of 47,241.17 reached on August 4, 2017.
Technically speaking, the 100 Index formed a small candle with a long upper shadow on charts as fear kept a tight grip on market participants. Ongoing momentum can push the 100 Index to levels last seen in October 2017. Major supports are at 200wk EMA (38,488), 52wk low (37,736) and 50mth EMA (37,728).
