KARACHI

After five sessions of bull domination, the bears won Tuesday to close the market 151 points in red at 31,600 level with supportive volumes of over 250m shares.

The market sentiment remained negative in anticipation of gas tariff hike, expected to be announced later today, because of which the cement, fertilizer and textile sectors remained under pressure closing most scripts of these sectors in red.

As the HBL’s secondary offering started today (will continue till Friday) investors’ interest gravitated towards book building, observed analyst Ahmed Saeed Khan.

POL rallied today as the E&P company along with its partners (OGDC, PPL) has successfully discovered hydrocarbon reserves at Mardankhel’s (Tal Block) Lumshiwal formation; this discovery is likely to have positive earnings impacts of Rs4.3/share for POL up 4.53pc, Rs0.7/share for PPL gains 1.9pc and Rs0.3/share for OGDC appreciate 0.95pc. Other market gainers included EFOODS (+4.92pc), PAEL 4.99pc) and ARPL 5pc gains respectively.

After rallying by 9.77pc or 2,825 points in last 5 consecutive sessions, some profit taking was seen at KSE-100 Index to close 0.48pc down at 31,601, said Samar Iqbal.

Volumes traded at the bourse were 250m shares (Rs14.0b/ $140m), slightly better than Year to Date average volumes of 239m shares (worth Rs13.3b/$133m).

Cements stocks which have been rallying in last few weeks saw some correction with LUCK and DGKC down 2.2pc and 1.4pc respectively.

Interestingly, MLCF continued its rally and gained 2.2pc at close with above average volumes of 32m shares (Rs.1.86b/ $186m).

PAEL and JSCL closed at their upper limits for a 6th consecutive trading session.

Oil stocks recovered due to increase in international oil prices.

POL rallied 3pc after announcing discovery in Tal Block as the new reserves will boost annualised earnings by Rs.3-4/share.

Institutional pledge for HBL offer for sale through book building, expected fall in banking spreads on declining SBP policy rate and selling pressure in selected overbought scrips across the board played a catalyst role in bearish activity at KSE, investment analysts commented.