Apathy at PSX paves the way for bears

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 Pakistan equities on Thursday failed to sustain bullish spell for lack of any trade related excitement and US-Pak tension

Market opened on a positive note as stocks carried momentum and inched upwards pushing Index higher over 43,100 level. All major sectors including cements traded higher in the early hour, however, met profit-taking afterwards dragging benchmark KSE100 Index in the red territory, analysts of Elixir Securities said adding the last hour of trading saw Index names extending losses further where notably DG Khan Cements underwent fresh hammering and close at an eighteen-month low on reported institutional selling.

On results front, National Bank of Pakistan closed lower after posting earnings below consensus, while Indus Motors too closed in red despite posting earnings higher than street esti

mates. INDU’s sales turnover contracted 4% YoY, in the outgoing quarter. However, reported revenues stood above expectations where higher priced variants contributed more towards the sales mix, we believe.

The company sold a total of 14,167 units during Apr-Jun 2017 period, down 16% YoY. Amid declining volumes, average revenue per car grew by 12% YoY due to increased sales of higher priced variant Fortunner, sales were up by 224% YoY which provided support to revenues in 4Q2017, report by Topline Securities said.

On Thursday the volumes increased by 11% to 185 million shares and values increased by 7% to Rs10bn/ $95 million.

DGKC closed at its lower limit as pressure on pricing continue to weigh on investors’ sentiments.

Top 5 contributors were NML (+3.2%), HUBC (+0.6%), NESTLE (+0.7%), JLICL (+2.9%) & NRL (+1.3%) contributed 42 points.

Amongst sectors, major selling was seen in cement (down 3.2%) as the sector contributed 145 points to index decline. Similarly, Oil & Gas marketing contributed 90.5 to index points as the sector was down 3%.

Market players expect that the market will continue to trade volatile and choppy with investors primarily tracking institutional flows to gauge market direction.