KARACHI: Investors at the Karachi bourse on Tuesday opted to book profits in the oil and gas sector after the KSE 100 Index briefly breached the 10,500 points mark to close at 10,419.82 points.
Blue-chips Oil and Gas Development Company Limited (OGDC) and Pakistan Petroleum Limited (PPL) remained the main stocks. OGDCL fell by 0.55 per cent to Rs131.13 with a turnover of 3.37 million shares, while PPL lost 1.28 per cent to Rs200.50 with a turnover of 3.09 million shares.
During the last five consecutive sessions, the KSE Index had witnessed an increase of four per cent.
“Extended profit sell-off by the local financial institutions in the absence of foreignersí pushed down the market,” said Sajjad Mankani, Associate Director at the BMA Capital Management.
The KSE 100 Index slightly slipped by 28.02 points, or 0.27 per cent to close at 10,419.82 points. The KSE 30 Index fell by 45.43 points, or 0.42 per cent, to end at 10,661.88 points.
Mankani links future of the market with the activities of foreign investors.
Hasnain Asghar Ali, analyst at Aziz Fidahusein, said that the banking sector led the morning rally on the back of unconfirmed foreign flows, but shares movement towards higher levels tempted the locals to book profits.
“What added to the uncertainty was the ongoing issue of the ability of the local financial groups to settle their financial obligations, especially in the energy sector,” Asghar said.
Ahsan Mehanti, CEO at Shahzad Chamdia Securities, said that limited foreign interest, investors concern on unavailability of financing (leverage) product in the market and high interest rates played a catalyst role in the negative activity, despite positive sentiments in the banking sector on the back of high banking spreads ahead of the announcement of results for March quarter.
Farhan Seth, analyst at the Topline Securities, said that the KSE-100 Index hit a new intra-day high by surpassing 10,500 levels. Later, local institutions preferred to book profits.
Moreover, Lotte Pakistan remained the volume leader on the optimism over the next results announcement season.
The day's turnover further surged to 244.70 million shares from 222.52 million shares traded on Monday.
The futures market turnover also jumped to 12 million shares from 7.41 million shares a day earlier.
The overall market capitalisation decreased by Rs8 billion to stand at Rs2,948 billion.
Negative signs continue to dominate the broader market. Out of the total 421 active stocks, 215 registered decline, 184 posted increase, while 22 stocks remained unchanged.
Lotte Pakistan closed with a turnover of 62.93 million shares as it ended at Rs12.77 with a gain of 65 paisas, followed by Azgard Nine at 18.02 million shares, as it closed at Rs12.44 with a loss of 44 paisas.
The National Bank of Pakistan (NBP) gained Rs1.22 to Rs72.16 with the turnover of 17.35 million shares, Fauji Fertilizer Bin Qasim gained 52 paisas to Rs32.60 with 16.32 million shares, and Pakistan Telecommunication Company lost 23 paisas to Rs21.12 with the turnover of 13.43 million shares.
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