KARACHI: The KSE-100 took a 390-point hit on Monday, finishing negative for the third successive session as correction and heavy selling by a foreign investor in an index-heavy company dragged it closer to the 45,700 mark.
After a brief open in the positive, the benchmark continued to plummet as profit-taking remained the order of the day. Selling pressure was witnessed in cement, auto, oil and refinery sectors, with all the scrips in cements closing in the red.
Uncertainty on the political front added to investors’ worry with news of foreign holder offloading a large block of shares in the Oil and Gas Development Company setting the tone for the benchmark.
At close, the benchmark KSE 100-share Index recorded a decrease of 389.62 points or 0.85% to settle at 45,682.24.
Elixir Securities’ analyst Jawwad Abubakr said equities extended declines with oils (-2%) causing the major dent.
“The day kicked off on a negative note with market talk of a large block on offer in Oil & Gas Development Company (OGDC PA -4.8%) by a foreign holder at a discount. About 35 million shares were offered at Rs164-168 and market talk suggests the block deal would be complete by the day’s end at Rs164/share, 2% discount to Monday’s closing price,” commented Abubakr.
“Notable names across cements and financials also witnessed profit-taking amid dull volumes. Overall, activity in the wider market remained depressed as institutional investors remained sidelined with the KSE All Share Index recording a turnover of under $60 million.
“On results front, Attock Refinery (ATRL -3.9%) closed in red after announcing lower quarterly earnings. Pakistan Oilfields (POL PA -0.5%) released result after market close with earnings slightly below our estimates at Rs13.15/share.
“[We] expect market to track flows as local investors await triggers before getting busy again in the market. We recommend staying long in financials and E&Ps,” he added.
Overall, trading volumes decreased to 144.8 million shares compared with Friday’s tally of 197.4 million.
Shares of 374 companies were traded. At the end of the day, 106 stocks closed higher, 250 declined while 18 remained unchanged. The value of shares traded during the day was Rs6.7 billion.
Unity Foods was the volume leader with 12 million shares, gaining Rs1.33 to close at Rs28.01. It was followed by K-Electric with 10.3 million shares, losing Rs0.07 to close at Rs7.04 and Engro Polymer with 9.8 million shares, losing Rs0.85 to close at Rs38.37.
Foreign institutional investors were net sellers of Rs4.5 billion worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.