KARACHI: The KSE-100 ended marginally lower on Tuesday, but not after a volatile ride that saw the index plunge as much as 654 points in intra-day trading before stocks staged a remarkable recovery.
After a brief positive open, the index plummeted as the bearish trend continued to wreak havoc on investor sentiment. The KSE-100 dropped below the 41,850 level before investors opted to cherry pick stocks, helping the index close marginally lower.
At close, the benchmark KSE 100-share Index recorded a decrease of 39.33 points or 0.09% to settle at 42,459.53.
Elixir Securities’ analyst Ali Raza said equities closed almost flat after witnessing a volatile session as the benchmark KSE-100 index traded in an 800-point range.
“The market carried the bearish momentum with the benchmark index tumbling within the first hour of trading. Initial selling pressure was reportedly due to margin calls that had risen sharply since Monday as brokers offloaded margin holdings,” Raza remarked.
“The KSE-100 fell by as much as 1.5% intra-day before recovering after the selling pressure cooled off and then traded volatile in a 300-point range.
“On the MSCI front, the Index provider announced no change for Pakistan constituents in MSCI EM Standard Index but removed Pak Electron (PAEL PA -1.4%), National Refinery (NRL PA -3.1%) and IGI Holdings (IGIHL PA -1.7%) from its Small Cap Index – that caused these stocks to come under pressure.
“On the corporate results front, Honda Atlas Cars (HCAR PA -1.4%) traded lower after announcing poor results Meanwhile, Gharibwal Cement (+2.3%) inched up after announcing the start of commercial operations of 250TPH vertical grinding mill.
“We continue to recommend cherry picking to take advantage of the ongoing weakness in value plays,” he added.
Overall, trading volumes rose to 181 million shares compared with Monday’s tally of 176 million.
Shares of 351 companies were traded. At the end of the day, 185 stocks closed higher, 142 declined while 24 remained unchanged. The value of shares traded during the day was Rs8.7 billion.
Fauji Cement XD was the volume leader with 16.9 million shares, gaining Rs0.43 to close at Rs25.79. It was followed by Bank of Punjab with 12.3 million shares, gaining Rs0.37 to close at Rs11.61 and Pak Elektron XD with 11.8 million shares, losing Rs0.57 to close at Rs39.17.
Foreign institutional investors were net sellers of Rs1.2 billion worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.