Market watch: KSE-100 retreats as investors opt for profit-booking

Benchmark index loses 210.36 points to close at 43,407.72

KARACHI: The stock market, following two days of gains, underwent a bearish session on Wednesday as the KSE-100 Index dropped over 200 points in the wake of profit-taking.

Amid brief bouts of buying, the KSE-100 retreated 272 points to hit an intra-day low of 43,346.39. Investors resorted to profit-booking, but by midday the index managed to recover slightly.

At close, the benchmark KSE 100-share Index recorded a decrease of 210.36 points or 0.48% to settle at 43,407.72.

JS Global analyst Maaz Mulla said Pakistan equities closed lower as the KSE-100 Index succumbed to the selling pressure likely from institutional investors on the back of political qualms.

"Major heavyweights namely Habib Bank (-2.7%), Habib Metropolitan Bank (-0.2%), Lucky Cement (-1.6%), Engro (-1.2%) and Hubco (-1.4%) dragged the market down by 153 points," he said.



On the political front, the government is expected to announce a tax-free budget and cut income tax and regulatory duty rates in a bid to provide maximum relief for all segments of the society.

Fauji Foods (+5%), from the food and personal care sector attracted investor interest on the back of news that Nurpur full cream UHT milk had been declared fit for consumption. As a result, the stock closed at its upper price cap.

Mixed sentiments were witnessed in the banking space as heavyweights Habib Bank (-2.7%) and United Bank (-0.2%) closed in the red.

Selling pressure was seen in the cement sector as investors opted to book profits, where Lucky Cement (-1.6%), Fauji Cement (-2.4%), Maple Leaf Cement (-0.5%) and DG Khan Cement (-0.6%) lost value to close in the red zone.



"Moving forward, we expect the market to depict a similar trend and recommend investors to see any upside as an opportunity to sell," he added.

Overall, trading volumes increased to 198 million shares compared with Tuesday's tally of 152 million.

Shares of 379 companies were traded. At the end of the day, 186 stocks closed higher, 173 declined while 20 remained unchanged. The value of shares traded during the day was Rs6.8 billion.

Lotte Chemical was the volume leader with 32.2 million shares, gaining Rs0.67 to close at Rs9.77. It was followed by Fauji Foods with 12.8 million shares, gaining Rs1.36 to close at Rs28.64 and Nimir Resins with 12.7 million shares, gaining Rs0.74 to close at Rs9.23.

Foreign institutional investors were net sellers of Rs367.7 million during the trading session, according to data compiled by the National Clearing Company of Pakistan.