Market stays bearish despite a promising start

Ghulam Raza Rajani

KARACHI: Market observed yet another volatile trading day. Start of market looked promising. Increase in global crude prices helped market to kickoff positively. This positivity was short lived as once again selling took over. Upcoming monetary policy kept investor on backfoot who preferred to sell. 
The benchmark KSE-100 index closed down by 214.57 point to close at 50,742.03 points. KSE All Share Index decreased by 32.51 to end at 35,081.41, KSE 30-Index dropped by 137.69 points to conclude at 26,787.33, whereas KMI 30-Index dipped by 390.89 points to finish the day at 86,365.52 levels.
Ali Raza at Elixir Securities said Pakistan Equities closed consecutive fourth session in red as morning gains were wiped on profit-taking. Day kicked off on a positive note with stocks trading higher for a brief period helped mainly by Oils as investor tracked uptrend in global crude prices. Benchmark KSE100 Index however couldn't sustain gains for long as profit-taking primarily in blue chips continued and dragged Index lower near 50,700 levels by market close. Upcoming announcements of Monetary Policy over the weekend and Federal Budget due next week likely kept most investors on the sidelines as evident by only approx 76mn shares exchanging hands on KSE100 Index. We see range bound market in near-term with index names being guided by institutional flows and investors keeping a close watch on budget-related news flow. Moreover, weekend Monetary Policy decision will likely be a non-event as most expect no change in discount rate.
The advance to decline ratio in the broader market remained in favour of bulls. Out of 413 scrips, 243 scrips advanced, 162 declined while the value of 8 scrips remained intact.
The ready market volume increased by 14.21 per cent to 345.05 million shares as compared to 302.13 million shares traded on last trading day.
Silk Bank Limited topped the list of actives, higher by 0.04 at Rs 1.91 on 24.30 million shares, followed by Summit Bank Limited increased by Rs 0.29 at Rs 6.63 on 21.46 million shares and Kohinoor Spinning Mills Limited up by Rs 0.76 at Rs 7.22 on 16.24 million shares.
Other actives were Dewan Salman Farooq Limited ascended by Rs 0.38 at Rs 5.69 on 13.68 million shares and WorldCall Telecom Limited improved by Rs 0.07 at Rs 3.45 on 11.42 million shares.
The overall market capitalization dipped by Rs 9.77 billion to Rs 10.95 trillion against Rs 10.105 trillion observed on last trading day.
Exide Pakistan Limited and Bhanero Textile Mills Limited remained the top gainer by Rs 45.35 and Rs 42.04 to close at Rs 952.35 and Rs 882.93 respectively, while ICI Pakistan Limited and Colgate Palmolive Limited were the major losers which lost Rs 48.70 and Rs 25.00 to close at Rs 1,114.61 and Rs 2,200.00 respectively.