KARACHI: The KSE 100-share Index fell for the third consecutive day and went below 41,600 points as political uncertainty and economic downturn prevented investors from taking fresh positions.
An extension in the tax amnesty scheme also failed to spark enthusiasm among investors who failed to make positive contribution to the stock market.
The bourse kicked off trading on a negative note, falling more than 200 points in the initial hours. However, volatility soon took over and the market oscillated throughout the day to finally close in the red. Automobile stocks took a hit as majority of them moved down.
At close on Tuesday, the benchmark KSE 100-share Index recorded a decrease of 169.63 points or 0.41% to settle at 41,564.42.
JS Global analyst Maaz Mulla said Pakistan bourse largely struggled for the second day of the week and closed at 41,564, down 170 points.
“Investors continued to fret over political uncertainty and economic slowdown. Volumes remained low as 104 million shares changed hands,” he said.
Fauji Foods (+2.30%) from the food sector led the market volumes with 7.4 million shares. Pakistan Petroleum (-1.28%), United Bank (-1.44%), Habib Bank (-0.88%), Hubco (-1.59%) and Pakistan Oilfields (-1.03%) were among major laggards that dragged the index down by 110 points, he said.
On the economic front, the caretaker minister for information and broadcasting said over Rs100 billion had been generated so far from the tax amnesty scheme while more was expected to come.
Selling pressure was witnessed in banking stocks as United Bank (-1.44%), Habib Bank (-0.88%), Bank Alfalah (-0.52%) and MCB Bank (-0.19%) lost value.
The cement sector blew hot and cold where Pioneer Cement (+1.90%), Maple Leaf Cement (+0.99%) and Fauji Cement (+1.12%) were in the black whereas Attock Cement (-2.93%), Kohat Cement (-2%) and Cherat Cement (-1.89%) were in the red.
“Moving forward, we expect the market to depict a similar trend, therefore, we recommend investors to see any upside as an opportunity to sell,” the analyst said.
Overall, trading volumes increased to 104 million shares compared with Monday’s tally of 84.5 million. The value of shares traded during the day was Rs3.7 billion.
Shares of 321 companies were traded. At the end of the day, 136 stocks closed higher, 162 declined while 23 remained unchanged.
Siddiqsons(R) was the volume leader with 16.6 million shares, gaining Rs0.08 to close at Rs1.32. It was followed by Fauji Foods with 7.4 million shares, gaining Rs0.78 to close at Rs34.67 and Unity Foods with 7.2 million shares, losing Rs0.86 to close at Rs29.88.
Foreign institutional investors were net sellers of Rs349.6 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.