Market watch: KSE-100 falls over 350 points amid thin activity
Aftershocks of Panama case verdict hurt investor confidence
Benchmark KSE-100 index decreases 204.48 points at 49,958. PHOTO: AFP/FILE
KARACHI:
Trading activity dropped again at the stock market on Thursday as political noise, in the wake of former prime minister Nawaz Sharif’s march from Islamabad to Lahore, continued to keep local investors wary of investment in stocks.
Despite opening in the green zone, the benchmark index started falling around midday and continued the downward trajectory till the close of session. A lack of serious buyers caused a majority of stocks, especially the notable ones, to shed points.
At close, the benchmark KSE 100-share Index recorded a decrease of 364.79 points or 0.79% to finish trading at 45,634.02.
According to Elixir Securities, Pakistan equities dropped again after experiencing volatile trading and dull volumes as domestic politics remained a major dampener.
The market opened in the green and the benchmark KSE-100 index traded in the positive territory until midday, followed by a slump with activity turning thin.
“Investors, mainly locals, traded selectively amid anxiety over the political front as former prime minister Nawaz Sharif resumed his defiant march to his hometown Lahore with thousands joining to show support,” Elixir said.
Market watch: KSE-100 Index recovers, finishes few points shy of 46,000
Activity in the wider market dropped as evident from a paltry 175 million shares changing hands on the KSE All-share Index, down 20% from Wednesday.
“Pak Elektron (-3.9%) traded lower after the company announced sub-par quarterly results while Maple Leaf Cement shed another 3.6% due to recent concern over a possible right issue by the company,” it said.
Kot Addu Power (-0.2%) closed slightly lower after announcing its intention, in a material notification, to buy a strategic stake in Hub Power (-1.44%).
“(We) expect the market to remain under pressure and trade range bound with locals continuing to track foreign flows and developments on the political front to gauge direction,” the report added.
JS Global analyst Maaz Mulla said in the initial hours of the day, the KSE-100 index gained and hit an intra-day high of 214 points.
However, on account of political noise and foreign selling, the index plummeted to close 365 points below Wednesday’s level of 45,634. The market also witnessed sluggish volumes, totalling 175 million shares.
Azgard Nine (-0.9%) from the textile composite sector led the market in terms of volumes with 11 million shares changing hands. Pak Elektron (-3.9%) declared its half-year results in which the company posted earnings per share (EPS) of Rs5.44 and dividend per share of Rs1.50.
Market watch: Political turbulence returns to haunt stock market
“The steel sector witnessed profit-booking as Aisha Steels (-2.6%), International Steels (-4.7%) and Amreli Steels (-2.5%) closed in the red zone. Habib Bank (-0.9%), MCB Bank (-0.4%), United Bank (-0.3%) and National Bank (-0.5%) from the banking sector also shed points.
“The political turmoil continues to impact investor sentiments, where we do not expect stability until clarity emerges. Hence, we recommend PSX investors to remain cautious and hold positions. We believe buying on dips can pay in the long term,” he added.
Overall, trading volumes fell to 175 million shares compared with Wednesday’s tally of 213 million.
Shares of 380 companies were traded. At the end of the day, 81 stocks closed higher, 277 declined while 22 remained unchanged. The value of shares traded during the day was Rs9.34 billion.
Azgard Nine was the volume leader with 10.9 million shares, losing Rs0.15 to close at Rs15.77. It was followed by Aisha Steel Mills with 9.58 million shares, losing Rs0.60 to close at Rs22.44 and The Bank of Punjab with 9.5 million shares, losing Rs0.03 to close at Rs11.15.
Foreign institutional investors were net sellers of Rs638 million during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.
Trading activity dropped again at the stock market on Thursday as political noise, in the wake of former prime minister Nawaz Sharif’s march from Islamabad to Lahore, continued to keep local investors wary of investment in stocks.
Despite opening in the green zone, the benchmark index started falling around midday and continued the downward trajectory till the close of session. A lack of serious buyers caused a majority of stocks, especially the notable ones, to shed points.
At close, the benchmark KSE 100-share Index recorded a decrease of 364.79 points or 0.79% to finish trading at 45,634.02.
According to Elixir Securities, Pakistan equities dropped again after experiencing volatile trading and dull volumes as domestic politics remained a major dampener.
The market opened in the green and the benchmark KSE-100 index traded in the positive territory until midday, followed by a slump with activity turning thin.
“Investors, mainly locals, traded selectively amid anxiety over the political front as former prime minister Nawaz Sharif resumed his defiant march to his hometown Lahore with thousands joining to show support,” Elixir said.
Market watch: KSE-100 Index recovers, finishes few points shy of 46,000
Activity in the wider market dropped as evident from a paltry 175 million shares changing hands on the KSE All-share Index, down 20% from Wednesday.
“Pak Elektron (-3.9%) traded lower after the company announced sub-par quarterly results while Maple Leaf Cement shed another 3.6% due to recent concern over a possible right issue by the company,” it said.
Kot Addu Power (-0.2%) closed slightly lower after announcing its intention, in a material notification, to buy a strategic stake in Hub Power (-1.44%).
“(We) expect the market to remain under pressure and trade range bound with locals continuing to track foreign flows and developments on the political front to gauge direction,” the report added.
JS Global analyst Maaz Mulla said in the initial hours of the day, the KSE-100 index gained and hit an intra-day high of 214 points.
However, on account of political noise and foreign selling, the index plummeted to close 365 points below Wednesday’s level of 45,634. The market also witnessed sluggish volumes, totalling 175 million shares.
Azgard Nine (-0.9%) from the textile composite sector led the market in terms of volumes with 11 million shares changing hands. Pak Elektron (-3.9%) declared its half-year results in which the company posted earnings per share (EPS) of Rs5.44 and dividend per share of Rs1.50.
Market watch: Political turbulence returns to haunt stock market
“The steel sector witnessed profit-booking as Aisha Steels (-2.6%), International Steels (-4.7%) and Amreli Steels (-2.5%) closed in the red zone. Habib Bank (-0.9%), MCB Bank (-0.4%), United Bank (-0.3%) and National Bank (-0.5%) from the banking sector also shed points.
“The political turmoil continues to impact investor sentiments, where we do not expect stability until clarity emerges. Hence, we recommend PSX investors to remain cautious and hold positions. We believe buying on dips can pay in the long term,” he added.
Overall, trading volumes fell to 175 million shares compared with Wednesday’s tally of 213 million.
Shares of 380 companies were traded. At the end of the day, 81 stocks closed higher, 277 declined while 22 remained unchanged. The value of shares traded during the day was Rs9.34 billion.
Azgard Nine was the volume leader with 10.9 million shares, losing Rs0.15 to close at Rs15.77. It was followed by Aisha Steel Mills with 9.58 million shares, losing Rs0.60 to close at Rs22.44 and The Bank of Punjab with 9.5 million shares, losing Rs0.03 to close at Rs11.15.
Foreign institutional investors were net sellers of Rs638 million during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.