LAHORE: The KSE 100 index wiped out Monday’s gains with a -0.28 per cent drop here on Tuesday. As expected, materials performed well, with cement companies appearing to confirm another price hike in the North amidst resurgent demand ahead of elections. DGKC (+2.5 per cent) and FCCL (+1.4 per cent) were the main flag bearers on this front. This manifested in rising overall volumes too (up 37 per cent on day on day basis). However, the index itself did not reflect this buoyancy as heavyweight names such as HBL (-1.6 per cent), ENGRO (-1.2 per cent) and LUCK (-0.6 per cent) cumulatively took away 83 points out of Tuesday’s 124 point decline. Newly listed AGP however, closed at its second consecutive upper circuit while HCAR’s 4.3 per cent gain was also noteworthy.
Materials dominated a significant chunk of market turnover for the 2nd day in a row (41 per cent of total turnover; up 54 per cent on day on day basis), led by DGKC and FCCL. This was followed by Utilities (21 per cent of turnover; up 32 per cent on day on day basis) dominated by SNGP and SSGC, and Financials (17 per cent of turnover; +161 per cent day on day) where BOP and BAFL saw volumes of 4.6 million shares and 1.1 million shares, respectively.
Market participation for the KSE 100 index increased to 61.33 million shares (+37.1 per cent on day on day basis). A major contribution to total market volume came from FCCL (+1.4 per cent), UNITY (+5.0 per cent) and DSL (-2.6 per cent) churning 32.2 million shares out of the All Share volume of 177.59 million shares. Daily traded value for the KSE 100 index increased to $45.3 million from $33.5 million in the previous session (+35.2 per cent on day on day basis); DGKC ($8.8 million), SNGP ($3.7 million) and FCCL ($3.2 million) were among top contributors from traded value perspective. Major contribution to the KSE 100 index downside came from HBL (-1.6 per cent), ENGRO (-1.2 per cent), BAHL (-1.7 per cent), KTML (-3.5 per cent) and LUCK (-0.6 per cent) together taking away 114 points.
On the flipside, DGKC (+2.5 per cent), HCAR (+4.3 per cent) and BAFL (+1.9 per cent) added 39 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.
With the market trading near its long-term mean valuation multiples, the absence of triggers in the near-term could keep the Index stuck in a tight range particularly in the backdrop of directionless politics.
According to an IMS Research report, analysts believe it is better to follow earnings growth trajectory where defensive sectors such as oil and gas, banks and fertilizers could increasingly come into the limelight as the year progresses, at the expense of cyclical such as autos.
