Market watch: KSE-100 sheds 240 points amid thin trading

Benchmark index decreases 0.59% to settle at 40,560.19

KARACHI: The KSE-100 index experienced a lacklustre session on Wednesday and shed 240 points as investors chose to stay away from active trading following approval of an amended finance bill in the National Assembly.

Absence of positive triggers also kept the investors at bay. Earlier, trading started on a positive note, but selling pressure emerged soon which dominated proceedings until the end and dragged the index down to below 40,600 points.

It was the third consecutive drop for the stock market when almost all major stocks fell. However, fertiliser shares displayed exceptional performance and rose despite the selling pressure.

At close, the benchmark KSE 100-share Index recorded a decrease of 240.06 points or 0.59% to settle at 40,560.19.



Elixir Securities' analyst Murtaza Jafar said equities continued their bearish streak, shedding 240 points to settle at 40,560.

He said lacklustre activity prevailed as only 52 million shares were traded while traded value for the benchmark index stood at $19.6 million - the lowest since May 17, 2018.

From the mainboard, only Nishat Chunian (+1.72%) made to the leaders' board as investors continued to show interest in the stock on the back of stellar financial result and bright prospects amidst rupee depreciation and potential government support for export-oriented sectors.

"Our chartist sees immediate support at 40,300-40,400, but any break below this on high volumes will lead to a further downside till 39,000-39,200," the analyst added.

JS Global analyst Danish Ladhani said bears once again dominated the bourse where the KSE-100 settled at 40,560, down 240 points. The index hit an intra-day high of +39 points and intra-day low of -329 points.

On the economic front, Sindh Chief Minister Syed Murad Ali Shah and a high-powered 11-member delegation of the World Bank discussed projects worth $10 billion for the province. Moreover, the Federal Board of Revenue (FBR) started a massive drive for the recovery of taxes from influential tax evaders.

Once again, financial, cement and energy stocks pulled the market down. Habib Bank (-0.6%), MCB Bank (-1%) and United Bank (-0.5%) closed in the red. In the cement sector, Lucky Cement (-0.8%), DG Khan Cement (-0.6%) and Maple Leaf Cement (-1.8%) were the major laggards.

Major heavyweights Habib Bank (-0.6%), Pakistan Petroleum Limited (-1.4%), Oil and Gas Development Company (-0.9%), Engro (-0.9%), MCB Bank (-1%) and United Bank (-0.5%) cumulatively erased 105 points from the index.



Overall, trading volumes decreased to 90 million shares compared with Tuesday's tally of 106.5 million. The value of shares traded during the day was Rs3.35 billion.

Shares of 357 companies were traded. At the end of the day, 124 stocks closed higher, 213 declined and 20 remained unchanged.

Unity Foods was the volume leader with 7.9 million shares, losing Rs0.04 to close at Rs31.02. It was followed by Nishat Chunian with 5.6 million shares, gaining Rs0.90 to close at Rs53.18 and TRG Pakistan with 5.4 million shares, losing Rs0.78 to close at Rs27.25.

Foreign institutional investors were net buyers of Rs1.19 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.