KARACHI: The stock market took a much-anticipated breather on Tuesday, as the KSE-100 Index lost 298 points to fall below the 43,000 level.
The negative finish also brought to an end a 13-session winning streak for the benchmark-100 share index with heavyweight automobile and cement sectors witnessing selling pressure.
Several prominent names in the fertiliser and commercial banking sectors also closed in the red zone as high reported selling and profit-taking took their toll on the index.
After a steep rise at the start of the session, the index maintained a downward trajectory, touching 42,566 points at one point before eventually rising again by almost 250 points.
At close on Tuesday, the KSE-100 Index ended with a decrease of 297.78 points or 0.69% to finish at 42,814.34.
Elixir Securities’ analyst Ali Raza said equities closed lower on Tuesday, snapping a 13-session positive run that added over 13.5% and close to 5,000 points to the KSE-100 Index.
“The market opened positive, but failed to carry the momentum as uncertain political environment in Baluochistan gave equities a good enough excuse to take a breather,” said Raza.
“Oil and gas exploration companies, financials and cements sunk in early trading and closed the day lower on profit-booking with Habib Bank HBL PA -2.4%, United Bank UBL PA -2.2%, Pakistan Petroeluem PPL PA -1.1% and OGDC PA -1% denting KSE-100 Index the most.
“Meanwhile, fertilisers and gas utilities again had a field day with the former remaining in the limelight as investors bet on upcoming fertiliser policy to benefit the industry, while the latter continued gains on euphoria over approval of third LNG pipeline.
“Consolidation maybe seen at current levels with chartists recommending strong support near 42,500 levels,” Raza added.
Overall, trading volume decreased to 225 million shares, compared with Monday’s tally of 270 million.
Shares of 370 companies were traded. At the end of the day, 132 stocks closed higher, 217 declined while 21 remained unchanged. The value of shares traded during the day was Rs9.75 billion.
TRG Pak was the volume leader with 23.5 million shares, gaining Rs1.36 to close at Rs30.78. It was followed by WorldCall Telecom with 19.4 million shares, losing Rs0.17 to close at Rs3.00 and Pak Elektron with 16.01 million shares, gaining Rs2.23 to close at Rs53.92.