KARACHI: Stocks consolidated at current levels on Thursday with the KSE-100 index after oscillating between green and red, closed with a minor decline of 12.14 points (0.03 per cent) to settle at 37,414.26.
The index rose by 112 points intraday, but succumbed to profit-taking as the euphoria over the MSCI Emerging Market classification died down since much of the expected gains were already factored into the prices of potentially eligible stocks.
Volume declined to 139 million shares, from 143m shares and 10 days average of 212m shares. Trading value drifted down to Rs6.9bn from Rs7.8bn the earlier day. Foreign selling was witnessed to the tune of $4.65m on Thursday.
“Weak sentiments witnessed at PSX amid pressure in blue-chip stocks amid consolidation in the post-budget session,” commented analyst Ahsan Mehanti at Arif Habib Corp. He said that the institutional support remained in oil stocks on rising global crude prices. But the record federal budget outlay on PSDP, CPEC projects and fertilisers subsidies failed to support falling stocks on concerns over additional tax levies in the federal budget.
Analyst Arhum Ghous at JS Global stated that the E&P sector continued to garner investor interest as the crude oil continued to trade above $51 a barrel mark. Major gainers of the aforementioned sector were POL up 0.94pc and PPL 0.66pc.
Kohinoor Textile Mills Ltd (KTML) down by 1.13 on the back of material information disseminated in the market that Hutton Properties Limited, a substantial shareholder of KTML has sold 1,985,500 ordinary shares of the company.
Most analysts said that going forward, the market activity could remain dull. Investors were advised to keep an eye on MSCI emerging market reclassification review in the coming week.