Market watch: Dramatic day as KSE-100 recovers to close 117 points down
The benchmark index had plunged over 590 points in intra-day trading
PHOTO: FILE
KARACHI:
Adhering to its new norm, the KSE-100 Index experienced another volatile ride on Tuesday, with panic-induced selling taking it down by over 590 points in intra-day trading, before investors cherry-picked at attractive valuations to help cause a significant recovery.
At close, the Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index ended with a fall of 116.66 points or 0.24% to finish at 48,539.06.
Market talk suggested the index’s plunge came on the back of falling crude prices, which have been the source of worry for the past four sessions.
Additionally, pressure amid the ongoing Panama case is keeping investors on their toes.
Stocks take another beating, KSE-100 falls 536 points
Growing uncertainty regarding the Securities and Exchange Commission of Pakistan’s next move against brokers has also taken its toll, resulting in mounting tension at the local bourse.
According to Elixir Securities, Pakistan equities closed marginally negative on a day that saw heightened volatility where benchmark KSE-100 Index traded in a wide range of over 600 points.
“Market took investors on a roller coaster ride as Index first nosedived 1.22% followed by recovery in late hours that wiped most of the day's losses on reported institutional buying,” said analyst Faisal Bilwani.
“Start to the day was on a negative note as stocks carried bearish momentum from Monday and kept sliding during the day as investors traded cautiously in absence of triggers, while sentiments were also dented on a suspension notice of one other broker, sent near midday,” said Bilwani.
Rough days for PSX
“The final ninety minutes, however, turned the tide with reports of foreign institutional buying along with rumours of progress on leveraged product triggering a snap rally with KSE-100 Index closing the day with only marginal losses,” he remarked.
“[We] Expect stocks to carry momentum with relief rally likely pushing KSE-100 Index beyond 49,000 where investors will again look for clarity on domestic political front and more importantly will be on the lookout for any whisper or concrete news on the most talked leverage product,” he added.
Meanwhile, JS Global analyst Arhum Ghous said volatility extended to Tuesday's trading session as well, as the index came staggering down to make an intraday low of -594 points to finally close 117 down at 48,539 level.
In-house financing : PSX, SECP issue warning, hold back stricter action
“OGDC (+0.28%) closed in the green in the E&P space as the company announced discovery of hydrocarbons at its Exploratory Well Chhutto 1,” said Ghous.
“Mixed sentiments were observed in the banking sector. Index heavy weight HBL (-0.39%) was a major laggard of the sector, whereas UBL invited investor interest on the back of news that the government has waived off 15% income tax on profit the bank is earning on the foreign currency loans extended to Pakistan,” he commented.
“Technology companies like SYS (-0.77%) and NETSOL (-2.09%) closed in the red zone on news that the taxation of e-commerce is likely to be considered in the upcoming budget.
“Moving forward, we recommend investors to remain cautious,” he added.
Stock market to be clean of black money, says a resolute SECP chief
On Tuesday, trading volumes rose to 195 million shares compared with Monday’s tally of 133 million.
Shares of 395 companies were traded. At the end of the day, 134 stocks closed higher, 248 declined while 13 remained unchanged. The value of shares traded during the day was Rs11.98 billion.
TRG was the volume leader with 14.4 million shares, gaining Rs0.53 to close at Rs53. SNGP followed with 12.1 million shares, losing Rs0.41 to close at Rs129.71, while Power Cement completed the list of top three with 11.94 million shares, gaining Rs0.96 to close at Rs19.28.
Foreign institutional investors were net sellers of Rs805 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Adhering to its new norm, the KSE-100 Index experienced another volatile ride on Tuesday, with panic-induced selling taking it down by over 590 points in intra-day trading, before investors cherry-picked at attractive valuations to help cause a significant recovery.
At close, the Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index ended with a fall of 116.66 points or 0.24% to finish at 48,539.06.
Market talk suggested the index’s plunge came on the back of falling crude prices, which have been the source of worry for the past four sessions.
Additionally, pressure amid the ongoing Panama case is keeping investors on their toes.
Stocks take another beating, KSE-100 falls 536 points
Growing uncertainty regarding the Securities and Exchange Commission of Pakistan’s next move against brokers has also taken its toll, resulting in mounting tension at the local bourse.
According to Elixir Securities, Pakistan equities closed marginally negative on a day that saw heightened volatility where benchmark KSE-100 Index traded in a wide range of over 600 points.
“Market took investors on a roller coaster ride as Index first nosedived 1.22% followed by recovery in late hours that wiped most of the day's losses on reported institutional buying,” said analyst Faisal Bilwani.
“Start to the day was on a negative note as stocks carried bearish momentum from Monday and kept sliding during the day as investors traded cautiously in absence of triggers, while sentiments were also dented on a suspension notice of one other broker, sent near midday,” said Bilwani.
Rough days for PSX
“The final ninety minutes, however, turned the tide with reports of foreign institutional buying along with rumours of progress on leveraged product triggering a snap rally with KSE-100 Index closing the day with only marginal losses,” he remarked.
“[We] Expect stocks to carry momentum with relief rally likely pushing KSE-100 Index beyond 49,000 where investors will again look for clarity on domestic political front and more importantly will be on the lookout for any whisper or concrete news on the most talked leverage product,” he added.
Meanwhile, JS Global analyst Arhum Ghous said volatility extended to Tuesday's trading session as well, as the index came staggering down to make an intraday low of -594 points to finally close 117 down at 48,539 level.
In-house financing : PSX, SECP issue warning, hold back stricter action
“OGDC (+0.28%) closed in the green in the E&P space as the company announced discovery of hydrocarbons at its Exploratory Well Chhutto 1,” said Ghous.
“Mixed sentiments were observed in the banking sector. Index heavy weight HBL (-0.39%) was a major laggard of the sector, whereas UBL invited investor interest on the back of news that the government has waived off 15% income tax on profit the bank is earning on the foreign currency loans extended to Pakistan,” he commented.
“Technology companies like SYS (-0.77%) and NETSOL (-2.09%) closed in the red zone on news that the taxation of e-commerce is likely to be considered in the upcoming budget.
“Moving forward, we recommend investors to remain cautious,” he added.
Stock market to be clean of black money, says a resolute SECP chief
On Tuesday, trading volumes rose to 195 million shares compared with Monday’s tally of 133 million.
Shares of 395 companies were traded. At the end of the day, 134 stocks closed higher, 248 declined while 13 remained unchanged. The value of shares traded during the day was Rs11.98 billion.
TRG was the volume leader with 14.4 million shares, gaining Rs0.53 to close at Rs53. SNGP followed with 12.1 million shares, losing Rs0.41 to close at Rs129.71, while Power Cement completed the list of top three with 11.94 million shares, gaining Rs0.96 to close at Rs19.28.
Foreign institutional investors were net sellers of Rs805 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.