KSE-100 plunges 680 points on institutional selling
Benchmark index loses 1.56% to finish trading at 43,002.84
Benchmark index loses 1.56% to finish trading at 43,002.83. PHOTO: FILE
KARACHI:
The stock market remained highly bearish on Wednesday as deteriorating macroeconomic indicators and rupee’s sharp depreciation in recent days took their toll on the bourse.
The KSE-100 Index dived 728 points in intra-day trading before making some recovery. The benchmark index was on a steady decline throughout the day as stocks faced across-the-board selling pressure.
Concerns about Pakistan’s placement next week on grey list by the Financial Action Task Force (FATF) for alleged failure to curb terrorism financing also made investors jittery.
According to Topline Securities’ analyst Nabeel Khurshid, heavy foreign selling also contributed to the negative trend. With trade war between the US and China intensifying, a sell-off was witnessed in global markets and its impact was also felt at the Pakistan Stock Exchange.
Market watch: Undeterred by foreign selling, KSE-100 surges 434 points
At close, the benchmark KSE 100-share Index recorded a plunge of 680 points or 1.56% to settle at 43,002.84.
Elixir Securities’ analyst Muhammad Arbash said the market opened slightly upwards and drifted lower as the session progressed. However, in the latter half, notable sectors were hammered on reported institutional selling.
Financial stocks led the decline and the sector fell 2.7% with Habib Bank (-3.5%) alone erasing 96 points from the benchmark index.
“Investors continued to be worried about persistent selling by foreign institutions, upcoming FATF decision on Pakistan, uncertainty over macroeconomics and lack of near-term positive triggers,” he said.
“We see equities remaining weak in the near term with chartists now eyeing 42,200/300 as important support levels.”
Market watch: Despite heavy foreign selling, KSE-100 advances 355 points
Overall, trading volumes increased to 136.4 million shares compared with Tuesday’s tally of 123.3 million. The value of shares traded during the day was Rs6.9 billion.
Shares of 342 companies were traded. At the end of the day, 75 stocks closed higher, 242 declined while 25 remained unchanged.
TRG Pakistan was the volume leader with 16.6 million shares, gaining Rs0.03 to close at Rs30.71. It was followed by Lotte Chemical Pakistan with 8.3 million shares, with no change to close at Rs12.41 and Pak Elektron with 6.6 million shares, losing Rs1.71 to close at Rs35.64.
Foreign institutional investors were net sellers of Rs305.1 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.
The stock market remained highly bearish on Wednesday as deteriorating macroeconomic indicators and rupee’s sharp depreciation in recent days took their toll on the bourse.
The KSE-100 Index dived 728 points in intra-day trading before making some recovery. The benchmark index was on a steady decline throughout the day as stocks faced across-the-board selling pressure.
Concerns about Pakistan’s placement next week on grey list by the Financial Action Task Force (FATF) for alleged failure to curb terrorism financing also made investors jittery.
According to Topline Securities’ analyst Nabeel Khurshid, heavy foreign selling also contributed to the negative trend. With trade war between the US and China intensifying, a sell-off was witnessed in global markets and its impact was also felt at the Pakistan Stock Exchange.
Market watch: Undeterred by foreign selling, KSE-100 surges 434 points
At close, the benchmark KSE 100-share Index recorded a plunge of 680 points or 1.56% to settle at 43,002.84.
Elixir Securities’ analyst Muhammad Arbash said the market opened slightly upwards and drifted lower as the session progressed. However, in the latter half, notable sectors were hammered on reported institutional selling.
Financial stocks led the decline and the sector fell 2.7% with Habib Bank (-3.5%) alone erasing 96 points from the benchmark index.
“Investors continued to be worried about persistent selling by foreign institutions, upcoming FATF decision on Pakistan, uncertainty over macroeconomics and lack of near-term positive triggers,” he said.
“We see equities remaining weak in the near term with chartists now eyeing 42,200/300 as important support levels.”
Market watch: Despite heavy foreign selling, KSE-100 advances 355 points
Overall, trading volumes increased to 136.4 million shares compared with Tuesday’s tally of 123.3 million. The value of shares traded during the day was Rs6.9 billion.
Shares of 342 companies were traded. At the end of the day, 75 stocks closed higher, 242 declined while 25 remained unchanged.
TRG Pakistan was the volume leader with 16.6 million shares, gaining Rs0.03 to close at Rs30.71. It was followed by Lotte Chemical Pakistan with 8.3 million shares, with no change to close at Rs12.41 and Pak Elektron with 6.6 million shares, losing Rs1.71 to close at Rs35.64.
Foreign institutional investors were net sellers of Rs305.1 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.