KARACHI: Stocks underwent a dramatic ride on Wednesday as the KSE-100 Index took a complete U-turn, registering an over 1,660-point intra-day movement after panic selling had caused it to plunge at the start of the trading session.
The index recovered during the latter half of the day, moving up to 47,600, after falling over 800 points within the opening hour before finding resistance near the 46,000-level.
At the end of trading, the Pakistan Stock Exchange’s (PSX) benchmark index recorded an eventual rise of 729.11 points or 1.56% to end at 47,603.48.
According to a report by Topline Securities, the index experienced the most volatile session in the past six months.
“KSE-100 witnessed most volatile session (hi/lo spread of 3.54%) since November 1, 2016 due to Panama case verdict announcement due on April 20,” said Head of International Sales Samar Iqbal.
“The market opened gap-down 1.5% due to the initial panic and subsequently fell to low of -1.8%.
“However, the market swiftly recovered as investors expect the decision tomorrow [April 20] would likely not be against the government, resultantly the market closed up 1.6%,” he added.
Meanwhile, JS Research analyst Nabeel Haroon said that the selling pressure was witnessed in the market during its initial hours, however it recovered later on.
“The selling pressure in market came as a reaction to the news that Supreme Court is all set to announce its verdict on the high profile political case on Thursday,” he said.
“However, the market took a sharp swing from its low and recovered as optimistic investors came in to accumulate positions at attractive levels.
“Askari Bank Limited Pakistan (AKBL +5.29%) and United Bank Limited (UBL +1.28%) in the banking sector gained to close in the green zone as both banking companies declared their 1Q2017 result.
“DG Khan Cement (DGKC +1.51%), in the cement sector, garnered investor interest as it posted earnings of Rs14.73/share in its 9MFY17 result announcement. Major contribution to the index came from Oil and Gas Development Company (OGDC +3.39%) and Pakistan Petroleum Limited (PPL +3.11%),” he added.
Overall, trading volumes rose to 265 million shares compared with Tuesday’s tally of 164 million.
Shares of 373 companies were traded. At the end of the day, 219 stocks closed higher, 136 declined while 18 remained unchanged. The value of shares traded during the day was Rs15.3 billion.
K-Electric Limited was the volume leader with 22.4 million shares, gaining Rs0.24 to close at Rs8.24. It was followed by TRG Pakistan Limited with 20 million shares, gaining Rs1.06 to close at Rs50.5 and Engro Polymer with 17.1 million shares, gaining Rs0.56 to close at Rs25.67.
Foreign institutional investors were net sellers of Rs1.4 billion during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.