Lower result postings keeps market mix

KSE-100 Index sees range bounded day closing lower by 274 points

KARACHI: Market observed an overall lackluster trading day as index remained range bounded. Positive closure on last trading day helped market to start the week on positive note. Reduction in HBL penalty assisted market to kickoff positively. Lower than anticipated result posting from major blue chipped stocks forced market to take uturn and end the day in red zone.
The benchmark KSE-100 index closed lower by 274.19 point to close at 41,126.83 points. KSE All Share Index decreased by 200.34 to end at 29,552.95, KSE 30-Index declined by 142.77 points to conclude at 20,963.10, whereas KMI 30-Index down by 876.06 points to finish the day at 69,703.71 levels.
Ali Raza at Elixir Securities said Pakistan Equities closed lower on Monday with benchmark KSE100 Index settling over 41,100 levels, down 0.7%. Wider market witnessed lackluster participation with just under 100mn shares exchanging hands on KSE All Index. Stocks opened and traded in positive territory for a brief period but afterwards saw steady decline amid lack of positive triggers and serious buyers on screen. Habib Bank HBL PA +5% stood strong for second consecutive session trading at upper price limit after lower-than-earlier-announced penalty of USD225mn was imposed on NY Branch. Meanwhile, United Bank Limited UBL PA -3.6% contributed most to day's losses on reports of an aggressive foreign seller. On results front, Pakistan Oilfields POL PA -3.1% closed lower after posting earnings and payout below consensus, while Attock Cement ACPL PA +0.4% closed little changed after posting earnings inline with street estimates. With Chartists seeing strong support at 41K level, we expect market to consolidate and trade range bound with KSE100 index hovering in a range of 400-500 points in the near term.
The advance to decline ratio in the broader market remained in favour of bears. Out of 374 scrips, 93 scrips advanced, 259 declined while the value of 22 scrips remained intact.
The ready market volume decreased by 32.56 per cent to 94.95 million shares as compared to 140.78 million shares traded on last trading day.
TRG Pakistan Limited topped the list of actives, lower by Rs 1.71 at Rs 38.09 on 11.11 million shares, followed by Jahangir Siddiqui Company Limited increased by Rs 1.04 at Rs 22.01 on 7.35 million shares and Azgard Nine Limited declined by Rs 0.70 at Rs 13.79 on 6.62 million shares.
Other actives were Aisha Steel Mills Limited descended by Rs 0.73 at Rs 18.57 on 5.78 million shares and Bank of Punjab dipped by Rs 0.27 at Rs 9.91 on 4.87 million shares.
Shankar at Aba Ali Habib Securities said market opened positive and within minutes surged to an intraday high of 41,552.05 points with a gain of 151 points where 116.99 points were solely added by HBL. Later however, due to absence of any trigger market failed to sustain its momentum and fell to an intraday low of 41,062.47 points and eventually closed at 41,126.83 points with a loss of 274.19 points. UBL was the key responsible scrip for dragging the index down by 68.07 points as its lost PKR 6.78 (-3.54%) in its value on grounds of prevailing uncertainty over continuation of their operations in USA amid tight regulations. Oil and gas exploratory companies end red today as oil prices edged lower on concerns of decrease in demand of oil from Florida as hurricane Irma destroyed heavily populated areas. The top pull was witnessed from POL (PKR -14.95) where scrip deducted 32.21 points from the index followed by OGDC (PKR -2.41), PPL (PKR -1.11) and MARI (PKR -16.96) cumulatively deducting 42.61 points from the index. ACPL inched up in its value and gained PKR 0.59 to close at PKR 203 as company announced results in line with market expectations. Likewise, ATRL gained PKR 2.86 in its value as company posted increase in earnings by 5.63x times YoY along with a final cash dividend of PKR 6 per share. NRL closed at its lower lock loosing PKR 32.48 in its value as company posted decrease in PBT by 18% YoY. In today's session, a total of 351 scrips changed hands where 88 advanced, 240 declined and 23 remained unchanged. Market faced an unsatisfactory volume/value of 94.94mn shares/PKR 5.5bn, down by 32%/34% as compared to 140mn shares/PKR 8.4bn in last trading session
The overall market capitalization dipped by Rs 58.57 billion to Rs 8.640 trillion against Rs 8.698 trillion observed on last trading day.
Khyber Tobacco Company Limited and ICI Pakistan Limited remained the top gainer by Rs 22.98 and Rs 21.11 close at Rs 892.95 and Rs 896.17 respectively, while Colgate Palmolive Limited and Bhanero Textile Mills Limited were the major losers which lost Rs 99.00 and Rs 40.61 to close at Rs 2,300.00 and Rs 771.64 respectively.