KARACHI: A bearish trend continued on Pakistan Stock Exchange on Wednesday due to heavy selling by local and foreign investors ahead of calendar year-end.
The benchmark KSE-100 Index plunged by 385.02 points or 0.61 percent to close at 62,448.01 points. After positive opening, the benchmark KSE-100 Index crossed 63,000 level to hit 63,261.05 points intra-day high, however panic selling in almost all sectors forced the index into negative zone to hit 61,082.50 points intra-day low level. The market witnessed healthy recovery in the second half of the session that supported the market to minimize its intra-day losses.
The daily trading volumes on ready counter decreased to 1.187 billion shares as compared to 1.513 billion shares traded on Tuesday while total daily traded value on ready counter declined to Rs 26.038 billion against previous session’s Rs 29.099 billion.
BRIndex100 decreased by 48.23 points or 0.75 percent to close at 6,410.01 points with total daily turnover of 1.101 billion shares.
BRIndex30 declined by 79.52 points or 0.34 percent to close at 23,277.38 points with total daily trading volumes of 873.759 million shares.
Foreign investors also remained on the selling side and withdrew $2.712 million from the local equity market. Total market capitalization declined by Rs 66 billion to Rs 9.027 trillion. Out of total 362 active scrips, 246 closed in negative and 107 in positive while the value of 09 stocks remained unchanged.
K-Electric was the volume leader with 280.811 million shares and gained Rs 0.47 to close at Rs 5.77 followed by WorldCall Telecom that closed at Rs 1.55, down Rs 0.15 with 211.123 million shares. Cnergyico PK lost Rs 0.12 to close at Rs 4.89 with 54.405 million shares.
Unilever Pakistan Foods and Mari Petroleum Company were the top gainers increasing by Rs 249.00 and Rs 52.11 respectively to close at Rs 21,799.00 and Rs 2,106.79 while Rafhan Maize Products Company and Hoechst Pakistan were the top losers declining by Rs 100.00 and Rs 93.00 respectively to close at Rs 9,800.00 and Rs 1,156.00.
Ahsan Mehanti at Arif Habib Corporation said pressure continued on pre election uncertainty. Late session recovery witnessed on reports of World Bank approval on $350 million financing under RISE-II and $1.2 billion ADB loan deals for budget financing.
He said investor concerns for high leverage and high leverage cost at PSX played a catalyst role in bearish close.
BR Automobile Assembler Index plunged by 377.74 points or 2.65 percent to close at 13,893.37 points with total turnover of 6.831 million shares.
BR Cement Index declined by 106.48 points or 1.6 percent to close at 6,563.06 points with 41.320 million shares.
BR Commercial Banks Index decreased by 127.08 points or 0.84 percent to close at 14,969.12 points with 89.915 million shares.
BR Power Generation and Distribution Index increased by 303.86 points or 2.13 percent to close at 14,552.63 points with 301.544 million shares.
BR Oil and Gas Index lost 20.01 points or 0.33 percent to close at 5,970.31 points with 92.689 million shares.
BR Tech. & Comm. Index fell by 59.51 points or 1.46 percent to close at 4,016.05 points with 288.722 million shares.
An analyst at Topline Securities said Pakistan equities had a recovery day. The tale of the day spread over two halves (with no break in between); first one with strong bearish rampage, simply continuation of the Tuesday’s selling spree; latter one provided some sigh of relief where courageous value hunters’ cherry picking helped the KSE-100 index to gain earlier lost grounds.
Ultimately, the day ended at 62,488 level, down 385 points or 0.61 percent after witnessing a recovery of 1,366 points from the intraday low at 61,083 level.
Reason of the market action remained intact as continuous profit taking and deleveraging of equity positions by investors ahead of calendar year end kept market sentiments subdued in the early trading hours. However, attractive valuation of blue-chip stocks could not kept value hunters at bay which translated into buying interest at the day’s low.
Subsequently, Power, E&P & Fertilizer sector received considerable buying interest where HUBC, MARI, KEL, PPL and EFERT positively contributed 179 points to the index. On the flip side, ENGRO, OGDC and LUCK witnessed selling headwinds as they lost 155 points, cumulatively.
Copyright Business Recorder, 2023
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