Equity market: Bears return on absence of positive triggers

Web Desk News Agency

12th Aug, 2021. 06:31 pm

KARACHI: The equity market started the session in the green zone, but later on bears took the charge and dominated the bourse throughout the day, while traded volume remained low due to the absence of any positive trigger, delay in refinery policy and mixed results announcements, dealers said on Thursday.

An analyst at Arif Habib Limited said after posting an uptick on Wednesday, the index again traded range-bound between +179 points and -202 points, closing the session down 115 points.

“[The] market [is] poised for a clear trigger in disregard to the announcement of infrastructure projects by the prime minister, which could have impacted stock prices of listed cement and steel sectors.”

The Pakistan Stock Exchange KSE-100 shares index shed 0.23 per cent, or 106.62 points, to close at 47,270.76 points. The KSE-30 shares index gained 0.02 per cent, or 3.35 points, to close at 18,929.57 points.

As many as 458 scrips were active of which 106 advanced, 329 declined and 23 remained unchanged. The ready market volumes stood at 230.17 million shares, compared with the turnover of 382.64 million shares in the last trading session.

An analyst at Topline Securities said the equities closed slightly negative after a slight positive opening on Thursday.

“Hub Power Company (Hubco) witnessed selling to shed 20 points off the chart, Pakistan State Oil (PSO) contributed negative 17 points, while Pakistan Petroleum Limited (PPL) contributed negative 15 points. Meezan Bank, up 3.22 per cent, rallied after announcing Rs1.5 cash dividend and 15 per cent bonus shares.”

The dealers said the profit-booking was observed across the board except for some blue-chip stocks, with nominal price gains.

The ongoing earnings season has so far turned out to show muted response from investors, especially with respect to the earnings of Attock Group where the pertinent stocks gave nominal and temporary upside.

“Going forward, we expect the market to remain range-bound in the ongoing result season; therefore, we advise our investors to adopt “Sell on Strength” strategy in the coming days,” an analyst at Pearl Securities said.

The companies, which reflected the highest gains included Siemens Pakistan, up Rs44.62 to close at Rs639.62/share; and Blessed Textile, up Rs29.46 to close at Rs459.99/share.

The companies that reflected the most losses included Sapphire Fiber, down Rs70.12 to close at Rs864.87/share; and Wyeth Pakistan, down Rs20 to end at Rs1,980/share.

The highest volumes were witnessed in TRG Pakistan with a turnover of 19.22 million shares. The scrip gained Rs3.69 to close at Rs163.92/share; followed by Ghani Global with a turnover of 15.07 million shares. It shed one paisa to close at Rs43.42/share. WorldCall Telecom was the third with a turnover of 11.81 million shares. It shed 6 paisas to finish at Rs3.37.

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