KARACHI: Pakistan Stock Exchange on Friday remained under severe pressure and closed in deep red due to investor concerns over the delay in announcement of general election results and lack of clarity about the formation of new government.
The benchmark KSE-100 Index plunged by 1,200.12 points or 1.87 percent and closed at 62,943.75 points. After opening, the index nosedived to hit 61,781.76 points intraday low, however fresh buying in some stocks in late hours supported the index to minimize its intraday losses.
Trading activity remained thin as daily volumes on ready counter decreased to 258.073 million shares as compared to 327.591 million shares traded on the previous session while total daily traded value on the ready counter declined to Rs 12.529 billion against previous session’s Rs 14.308 billion.
BRIndex100 decreased by 155.37 points or 2.35 percent to close at 6,445.72 points with total daily turnover of 230.089 million shares.
BRIndex30 declined by 735.11 points or 3.13 percent to close at 22,745.95 points with total daily trading volumes of 189.010 million shares.
Foreign investors however remained net buyers of shares worth $2.192 million. Total market capitalization declined by Rs 163 billion to stand at Rs 9.198 trillion. Out of total 319 active scrips, 241 closed in negative and only 55 in positive while the value of 23 stocks remained unchanged.
K-Electric was the volume leader with 20.541 million shares however lost Rs 0.21 to close at Rs 4.65 followed by OGDC that declined by Rs 5.59 to close at Rs 145.08 with 18.933 million shares. PPL decreased by Rs 4.49 to close at Rs 116.78 with 17.861 million shares.
Philip Morris Pakistan and Packages Limited were the top gainers increasing by Rs 30.00 and Rs 12.73 respectively to close at Rs 700.00 and Rs 522.85 while Unilever Pakistan Foods and Mari Petroleum Company were the top losers declining by Rs 64.33 and Rs 56.74 respectively to close at Rs 22,300.00 and Rs 2,274.11.
Ahsan Mehanti at Arif Habib Corporation said stocks fell across the board on political uncertainty amid delays over general elections results. Moody’s rating concerns over political instability, policy uncertainty crucial for the country facing very challenging macroeconomic conditions with fragile balance of payment and high inflation, and investor concerns for surging industrial power tariff impacted the sentiments.
He said over leverage and high leverage cost at PSX played a catalyst role in bearish close.
BR Automobile Assembler Index lost 87.69 points or 0.62 percent to close at 14,150.66 points with total turnover of 3.656 million shares.
BR Cement Index declined by 148.69 points or 2.25 percent to close at 6,448.76 points with 19.213 million shares.
BR Commercial Banks Index decreased by 235.42 points or 1.48 percent to close at 15,692.74 points with 20.136 million shares.
BR Power Generation and Distribution Index fell by 216.29 points or 1.52 percent to close at 13,978.74 points with 26.350 million shares.
BR Oil and Gas Index plunged by 186.6 points or 2.91 percent to close at 6,232.17 points with 56.391 million shares.
BR Tech. & Comm. Index eroded 86.74 points or 2.37 percent to close at 3,570.79 points with 33.171 million shares.
An analyst at Topline Securities said that the market reacted negatively to delayed result of general election where initial result announcement showed no clear majority of a single party. The KSE-100 Index declined to make an intraday low of minus 2,362 points, down by 3.68 percent.
However some recovery was observed as the day progressed and result started coming where number of seats won by PMLN increased in number and probability of coalition government led by PMLN augmented.
Major contribution to the index came from OGDC, PPL, ENGRO, EFERT and HUBC, as they lost value to weigh down on the index by minus 366 points.
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