KSE-100 Index: Daily Overview – October 26
Wednesday, October 26th, 2011 8:17:10 by Hammad Malik
KSE-100 Index: Daily Overview – October 26
The KSE-100 Index failed to sustain the 11,500 point barrier, shedding 130 points on Wednesday, October 26 to close at 11,387 points to reach the lowest level in the October. Although volumes showed improvement at 80.9 million shares, the sentiment remained negative throughout the session.
FFBL announced its result in-line with the market expectations, declaring a Rs. 3 pay-out, but this was not enough to instigate a rally. A media report which highlighted the curtailment of gas to the entire Fertilizer sector prevailed and forced market giants such as Engro to close at a lower lock.
Last week, the government announced that gas supply will be halted to Engro, Dawood Hercules and Pak Arab Fertilizer till further notice, but later, an agreement was supposedly reached on this matter. The news broke out again on media yesterday and thus served as a huge blow to the investor sentiment. Apart from Engro, FFC largely remained under pressure throughout the session and FFBL, despite a favourable result, closed near lower lock.
Mr. Ali Nadeem, Manager of Equity Sales at First National Equities asserted that the management’s decision to delay book closure of FFBL till December proved to be negative news for the investors, who had started to regain confidence in the equity market after an extended period of almost no activity.
The foreign investor portfolio investment does not portray a positive image either. Yesterday alone, there was a net selling of $3.8 million and today, there was speculation of a similar trend. Nishat Mills experienced a 24% decline in YoY earnings and thus it is largely believed that foreigners are selling the scrip.
Ali showed concern about the Index falling below the 11,500 barrier and believes that a resistance should occur around the 11,100 mark. However, if the market does not sustain pressure, the Index might shed more points as well.
The last three sessions have closed in the red zone and Ali believes that a technical correction might be on the cards in the next few days. He articulated that the market could rebound, but there is no positive news to support this assertion.
Short URL: https://www.newspakistan.pk/?p=1602
Posted by Hammad Malik
on Oct 26 2011. Filed under Business.
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