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KARACHI: After testing new highs of 40,211 points during the outgoing week, Pakistan Stock Exchange’s benchmark 100-share index retreated as investors resorted to profit-taking. Resultantly, the KSE-100 index declined 409 points, or 1.02 per cent, to close at 39,499.

Average daily volumes for the week dropped 13pc to 230.7 million shares over the earlier week. On the other hand, average daily values climbed 13pc to Rs12.9 billion, indicating that much of the activity took place in high-valued stocks.

Volume leaders during the week were: DKEL (125.6m shares), TRG (66.51m), DCL (58.48m), DFML (40.18m) and DSFL (38.75m).

Foreign investors were net sellers of $18.4m worth shares during the week. Chemicals sector witnessed net foreign portfolio outflow of $10.5m while the cement sector witnessed net buying of $0.7m.

Sector-wise, cements were down 0.7pc week-on-week on increasing coal prices and strong price run during this year. Fertilisers declined 2.6pc on weak outlook, banks retracted 2pc on continuous foreign selling, whereas gas utilities fell 3.1pc after strong price run-up witnessing correction at high levels.

However, heavyweight oil and gas sector fared better than the rest during the week with a rise of 1.4pc on the back of increasing international crude oil prices.

Analysts at Intermarket Securities observed that the major contribution to downside came from ENRGO (6.66pc), HBL (3.17pc), HUBC (3.58pc), UBL (3.18pc) and MCB (3.06pc), which collectively took away 380 points from the index.

Contribution to index gains came on the back of gains seen in KAPCO (5.13pc), PPL (2.26pc), NATF (13.18pc), OGDC (1.71pc) and POL (3.61pc), which collectively added 159 points.

Key news during the week included: Yields of Treasury bills remained unchanged across all tenors in the week’s auction despite heavy participation with bids amounting to Rs659.3bn where the government raised Rs373bn. Foreign direct investment declined 14.6pc year-on-year with net flows of $64.3m in July with total foreign investment for the month at $113.9m, which was 1.24 times higher year-on-year on rising portfolio investments.

Moreover, the National Assembly’s Standing Committee on Finance approved the Benami Transaction (Prohibition) Bill 2016, and the Economic Coordination Committee of the Cabinet approved sale of imported urea available with NFML at a discounted price of Rs1,310 per bag compared to the subsidised local price of Rs1,400 per bag.

According to AKD Securities, gaining stocks were led by MEBL (6.43pc), KAPCO (5.13pc), ABL (4.37pc), POL (3.61pc) and PSMC (3.43pc). On the other hand, laggards included ENGRO (6.66pc), DAWH (5.59pc), HUBC (3.58pc), MLCF (3.55pc) and SNGP (3.52pc).

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