Saturday, 5 November 2016

Profit-taking ends three-day rally on PSX

KARACHI: The three-day rally that saw the KSE-100 index gain a staggering 2,081 points came to a halt on Friday as investors decided to take profit with the 42,000-point level close at hand.
Profit-taking was seen mainly in the second session, as the KSE-100 index closed down by 132.9 points (0.32pc) at 41,841.56 points.
Volumes declined to 451 million shares from 529m shares traded a day ago while the trading value slipped to Rs15.3 billion from Rs19.2bn on Thursday.
Dealers at JS Global observed that volatility prevailed as the index juggled between 147 points and minus 175 points while the market witnessed profit-taking on the back of uncertainty in the global political situation ahead of the US elections.
Analyst Ahsan Mehanti commented that stocks closed lower amid institutional profit-taking in the post-earnings season. “Fall in global crude prices below $45 per barrel, bearish global equities and renewed concerns over outcome of SC probe into the Panama-gate scandal played a catalyst’s role in the bearish close.”
The overbought banking sector, which had seen a strong rally in the last three sessions, went into technical correction, with Habib Bank, United Bank and MCB Bank losing 2.53 per cent, 1.4pc and 0.5pc, respectively, shaving off a little over 100 points from the index.
Cements continued to shed values, with 12 out of the 16 listed companies closing in the red, as international coal prices tested new highs.
Energy exploration and production stocks remained under pressure. Oil and Gas Development Company lost 0.17pc and Pakistan Oilfields was down by 0.88pc after crude oil posted five straight days of declines triggered by a surge in US crude inventories.
November 5th, 2016                                                                         DAWN News

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