LAHORE: The Pakistan Stock Exchange (PSX) kicked off another week in red. The market moved slightly positive in early trading but soon began to fall the other way, as investors anxiously wait for the announcement of Financial Action Task Force’s (FATF) decision on placement of Pakistan in the grey list. Market Analysts expect the decision to make it harder for the country to meet its financing needs causing difficulties to the economy.
The KSE 100 index slipped to an intraday low of 40,900.74 before it finally ended the session down 659.15 points at 40,978.23. Just three sessions back (on June 20, 2018) the index had recorded a close at 43,002.83. The KMI 30 index fell by another 2.43 per cent whereas KSE All Share index was lower by 395.60 points at 29,756.69.
The total market volume depreciated from 178.16 million in the previous session to 166.64 million. All five volume leaders succumbed to the falling market and laid off gains. K-Electric Limited (KEL -0.38 per cent) was highest traded with 18.65 million shares exchanged. The Bank of Punjab (BOP – 1.85 per cent) was next with 11.18 million shares traded and was followed by Pak Elektron Limited (PAEL – 3.97 per cent) with 7.77 million shares in volume.
The cement sector lost a massive 3.71 per cent from its total market capitalisation. Fauji Cement Company Limited (FCCL) depreciated by 4.89 per cent. Big names like D.G. Khan Cement Company Limited (DGKC), Maple leaf Cement Factory Limited (MLCF) and Lucky Cement Limited (LUCK) lost 3.32 per cent, 4.98 per cent and 4.86 per cent respectively.
Technically speaking, market bears extended losses for the 4th consecutive session and managed to close well below recent low from May 18, 2018 (41,458). On a closing basis, the KSE 100 index is deep into correction territory and could test levels last seen in October 2017 (sub 40,000 levels). Next major support is 52 week low (37,736) and 50 month EMA (37,589).
In other market-related news, Al-Tahur Limited is offering 37 million shares through book building on June 25-26, 2018. The company plans to increase its production capacity through this listing. It intends to increase its herd size, storing capacity and introduce a new Stock Keeping Unit (SKU) in Ecoleon Packaging. Al-Tahur is offering 25 per cent of the total post-IPO paid-up capital at a floor price of Rs20.00 including a premium of Rs10 per share in order to raise Rs733.00 million.
