KSE sheds 53 points on profit-taking

KARACHI - Profit-taking witnessed at the local bourse mainly in overbought blue-chip stocks as the KSE 100-index shed 53 points to close at 7,631 points on Tuesday. SBP has called the monetary policy review on 25 July, a week ahead of market expectation. Investors preferred booking profits and remained concerned over falling rupee value. Initially the index gained 50 plus points but later the market lost 79 points. News related to reinitiating of future contracts in ten stocks was more or less discounted. Market is behaving in a same manner as Pakistan Cricket team behaves. After performing in a tremendous fashion gaining over 182 points, market lost its bullish momentum as selling pressure griped the market, stated research analyst Bilal Asif. The KSE 100-index was positive in the opening, up by 21.64 points while index was unable to maintain the positive stance due to the profit taking activities. The bourse closed the day at 7,631.66 points with a loss of 52.99 points. Trading activity was further improved as compared to the last trading session. The ready market volume stood up to 210.988m shares as compared to last trading sessions 194.695m shares. Total trading value of the market increased to Rs9.604b from Rs 8.866b of last trading session. Market capitalisation came down to Rs2.246tr ($27.22b) from Rs2.259tr of last session. Out of 321 actively traded stocks at the Karachi stock market, 138 gained value, 170 lost and the worth of the shares of only 13 cos remained unchanged. Profit taking has been witnessed across the board; OGDC took the beat with a loss of PKR1.88/share. DGKC, HUBCO, BAFL has registered minute gains along with few other gainers. AICL gained valuable ground with Rs4.01/share as the stock in nearing 100k mark. Mansha stocks also lost some ground after Mondays handsome gains. DGKC was crowned as the volume leader of the day with a healthy turnover of 16.786 million shares on Tuesday, followed by Pace Pak with 16.410m shares, Bank Al-Falah 15.553m shares, Azgard Nine 11.177m shares, JSCL 9.544m shares, HUBCO 8.872m shares, Bosicor Pak 8.041m shares, OGDC 7.418m shares, Lucky Cement 7.257m shares, NBP 7.230m shares namely. Prominent gainers at the KSE include Unilever Pak, up by Rs12.33/share with a small turnover of only 320 shares, Packages Limited added Rs7.57/share and its value was improved to Rs167.67, Indus Motor gained Rs5.86/share and closed at Rs123.20, Attock Refinery up by Rs5.43/share to close at Rs150.30, Sanofi Aventis gained Rs5.40/share, closing at Rs114.60, Pak Refinery up by Rs5.32/share to close at Rs111.88. Lakson Tobacco, on the other hand, lost Rs5.96/share to close at Rs165.04, Exide Pak down by Rs4.52/share and its value was decreased to Rs150.02 with the trading of only 300 shares, Mari Gas Co lost Rs4.44/share and closed at Rs155.76, Atlas Honda down by Rs3.42/share, closing at Rs94.10, PPL lost Rs2.69/share to close at Rs192.53, GlaxoSmithKline Pak lost Rs2.57/share and closed at Rs125.64. Now the next trigger is the monetary policy statement, the question is whether SBP will maintain the same discount rate or not. As we all know the inflation numbers has improved over time, but the increase in oil prices to Rs60+/liter in July may translate in to higher inflation numbers for July, which may possibly impact the decision of rate cut. Furthermore, non-compliance of IMF conditionalitys potentially can reduce the probability of rate cut specially in the upcoming monetary policy meeting. Keeping in view the due date of IMF next trench, SBP may choose a much safer path to keep the rate constant.

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