Foreign selling keeps Market in a flux

KSE-100 Index sees another bearish closing lower by 346 points
Ghulam Raza Rajani

KARACHI: Market carried on from where it left the previous day seeing an overall bearish session. Political uncertainty once again leads to negative start of market.  Foreigners selling added fuel to fire as index remained in red zone. Long weekend led to lower participation volumes
The benchmark KSE-100 index closed down by 345.53 point to close at 45,288.49 points. KSE All Share Index decreased by 192.99 to end at 32,079.70, KSE 30-Index declined by 240.42 points to conclude at 23,347.57, whereas KMI 30-Index dipped by 795.75 points to finish the day at 77,022.88 levels.
Ali Raza at Elixir Securities said Pakistan Equities extended losses on Friday with benchmark KSE100 Index dipping further to 45,300 levels. Activity in wider market also painted a dreary picture with only ~114mn shs exchanging hands on KSE All Index, down 35% vs. yesterday and 46% vs. this week's average. Market traded in negative territory from the word go as Index names across major sectors carried bearish momentum and slide in dull trading. Institutional investors likely refrained from participating aggressively in the wake of domestic political noise, while most retail investors also preferred to stay on the sidelines ahead of long holidays. Meanwhile, Engro Foods EFOODS PA -5% hit lower price limit after posting poor result while Habib Bank HBL PA -1.2% too traded in red after announcing slightly lower-than-expected quarterly earnings. Expect stocks to remain under pressure on political noise with cleric Tahir Qadri announcing a sit-in in Lahore city on Wednesday while ruling PMLN is expected to continue to aggressively defend ousted PM Nawaz. We see investors to take cues from and closely track political developments over the long weekend (Pakistan closed on Monday August 14 for Independence Day).
The advance to decline ratio in the broader market remained in favour of bears. Out of 364 scrips, 127 scrips advanced, 219 declined while the value of 18 scrips remained intact.
The ready market volume decreased by 35.07 per cent to 113.81 million shares as compared to 175.27 million shares traded on last trading day.
Azgard Nine Limited topped the list of actives, higher by Rs 0.82 at Rs 16.59 on 18.58 million shares, followed by TRG Pakistan Limited increased by Rs 0.83 at Rs 44.66 on 6.23 million shares and Aisha Steel Mills Limited improved by Rs 0.29 at Rs 22.73 on 5.37 million shares.
Other actives were Sui Southern Gas Company ascended by Rs 1.02 at Rs 41.07 on 5.04 million shares and Dewan Motors Company Limited dipped by Rs 0.80 at Rs 46.97 on 4.53 million shares.
According to Fahad Qasim at Topline Securities The KSE-100 index shed 3.4%/1,589pts in the outgoing week to close at the 45,288point level. Participation thinned significantly as average volumes fell 46% Wow to 190mn.sh while traded value declined 42% to Rs9.6bn/US$92mn. After bouncing 2.1% last week investors sought to book gains as the political theater draws masses again - Ousted Tiger Nawaz Sharif & his PML-N crew careen down the Grand Trunk Road, taking every pit stop as an opportunity to criticize those who 'dealt' in his disqualification. Results were mixed; market caught wind of PAEL poor earnings well before as evident by 11% correction in 5 sessions preceding announcement. PSO rallied 5% Wow due to stellar full year earnings growth of 77% & bumper cash (Rs15) & stock (20%) payout. EFOODS tanked 12% with a dismal 2Q LPS of Rs0.19; earlier in print the MD highlighted tax changes significantly hampered sales. Sector wise; Engineering shed 7% Wow, Fert (-5%), Cement (-4%), Power (-4%), E&P (-3%), Banks (-3%), Auto (-3%) & OMC (-2%).Insurance cos (+US$7.4mn) were the largest domestic buyers, while Foreigners sold US$31.2mn during the week vs. selling US$13.2mn last week; selling was concentrated in OMC (US$8.5mn), Banks (US$6.7mn), E&P (US$6.3mn) & Cement (US$4.3mn).
The overall market capitalization was down by Rs 56.68 billion to Rs 9.421 trillion against Rs 9.478 trillion observed on last trading day.
ICI Pakistan Limited and Mari Petroleum Limited remained the top gainer by Rs 24.08 and Rs 19.40 close at Rs 1,039.50 and Rs 1,809.41 respectively, while Wyeth Pakistan Limited and Murree Brewery Limited were the major losers which lost Rs 67.30 and Rs 35.05 to close at Rs 2,232.70 and Rs 875.00 respectively.