KARACHI: Pakistan equities closed yet another session in the red, the third in succession, as an overdue correction continued with the benchmark KSE-100 Index witnessing wild swings in a near 900-point-range.
A brief positive open was followed by stocks taking a nosedive in the red, as the KSE-100 went as low as 48,116 points.
At close, the Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index finished with a fall of 0.43% or 209.89 points to end at 48,678.65.
Market watch: Index continues to slide, closes below 48,900
Elixir Securities, in its report, stated a brief positive open on thin volumes was quickly followed by the wider market taking a nosedive and entering the red zone as across-the-board institutional profit-taking resulted in KSE-100 Index testing support near 48,100.
“However, the market saw recovery near mid-day and pared losses afterwards with index names across oils, cements, financials and fertilisers seeing value buying at lower lows, helping KSE-100 Index recover 1.1% and settle just 210 points lower,” said analyst Ali Raza.
Market watch: Stocks witness another correction
“Highlight of the day was Maple Leaf Cement (MLCF PA +2.6%) that gained in final hours of trading with investors cheering positive news that highlights progress on company's planned expansion,” said Raza.
“We see volatility to prevail with institutional investors continuing to guide market directions. The KSE-100 Index, however, may recover lost grounds in days ahead on earnings and pay-out excitement as corporate earnings season is just around the corner,” he added.
Meanwhile, JS Global analyst Nabeel Haroon said the market opened on a shaky note, followed by heavy selling as the index lost to make an intraday low of -780 points.
“The market recovered during the latter hours as the index closed 210 points lower than its previous day close (48,679 level),” said Haroon.
Market watch: Profit-taking witnessed, but index surpasses 49,500
“MLCF (+2.57%) gained on the back of material information disseminated in the market that the cement manufacturer has signed a contract for procurement of equipment and engineering of a dry production clinker line of 7,300tpd,” he remarked.
“FFBL gained on the back of the news that its subsidiary Fauji Meat Limited has started its commercial operation as of Monday. An abattoir and meat processing facility has been established with a daily production capacity of 100 tons of meat (85 tons of beef and 15 tons of mutton) in frozen and chilled categories for worldwide export by the company with a total cost of around $75 million,” said the analyst.
“LUCK (-3.23%), HBL (-1.98%) and OGDC (-1.04%) were the major index movers.
“Moving forward, we recommend investors to see any major dip in the market as an opportunity to buy,” he added.
Trading volumes rose to 379 million shares compared with Monday’s tally of 316 million.
Market watch: KSE-100 gains 505.81 points, ends at new record high
Shares of 415 companies were traded. At the end of the day, 130 stocks closed higher, 272 declined while 13 remained unchanged. The value of shares traded during the day was Rs22.4 billion.
Sui Southern Gas Limited was the volume leader with 22.5 million shares, gaining Rs0.53 to finish at Rs39.17. It was followed by Faysal Bank with 21.9 million shares, gaining Rs1.23 to close at Rs25.84 and Aisha Steel Mills with 15.7 million shares, gaining 0.43 to close at Rs18.42.
Foreign institutional investors were net sellers of Rs956 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.