Market watch: Stocks plunge as selling pressure mounts
Benchmark index decreases 630.52 points to settle at 37,714.90
Benchmark index decreases 630.52 points to settle at 37,714.90. PHOTO: PPI
KARACHI:
Bears dominated the Pakistan Stock Exchange as the benchmark index dropped over 700 points in intra-day trading and ended the second successive session in the red.
The KSE-100 index tumbled in the early hours of trading after selling pressure mounted due to the lack of concrete news about how the critical economic challenges would be tackled. Investors remained wary and continued to book profits, which pushed the index below 38,000 points.
"The day's proceedings were also influenced by the sell-off in the Asian market; China's CSI-300 index of mainland stocks was down 2.5%, the Hang Seng index in Hong Kong fell 3% and Japan's Nikkei 225 index was down 2.7%," said Topline Securities in its report.
At the end of trading, the benchmark KSE 100-share Index recorded a decrease of 630.52 points or 1.64% to settle at 37,714.90.
Elixir Securities' analyst Murtaza Jafar said, "In line with our initial view, the KSE-100 index closed down 1.64% at 37,715 as most of the index-heavy stocks traded under pressure."
Market watch: KSE-100 ends three-day winning streak in volatile trade
A number of corporate results were announced during the day. Kot Addu Power (+1.42%) reported 1QFY19 earnings per share (EPS) of Rs3.5 whereas Kohat Cement (-3.94%) posted EPS of Rs2.6.
However, the major disappointment for the market came from financial results of Pak Suzuki Motor Company (-5%) and National Bank of Pakistan (-3.27%). The bank announced 3Q EPS of Rs1.73, taking 9MCY18 EPS to Rs7.60.
The Economic Coordination Committee (ECC) is scheduled to meet on Wednesday to review and finalise modalities for the issuance of no-objection certificate for the purchase of 66% shareholding by Shanghai Electric Power in K-Electric (-1.49%) and decide on the pending increase in electricity tariffs.
"All eyes will be focused on the ongoing PM visit to Saudi Arabia; any development about potential flows for Pakistan's foreign currency reserves and/or oil supply on deferred payments will lift investor sentiments," the analyst said.
KSE-100 recovers 2.4% after losing ground for three weeks
JS Global analyst Danish Ladhani said the stock market came under selling pressure amid Prime Minister Imran Khan's two-day visit to Riyadh.
Cement, financial, auto and energy were among the sectors that dragged the market down. Oil and Gas Development Company (-1.8%), Pakistan Petroleum (-2.2%), Habib Bank (-3%), MCB Bank (-0.8%), Pakistan Oilfields (-0.1%), United Bank (-1.5%), Fauji Fertiliser (-0.7%) and Lucky Cement (-4.1%) remained the major index dampeners.
"From auto stocks, Pak Suzuki Motor Company (-5%) closed limit down as the company announced 9MCY18 EPS of Rs16.92 with no cash payout while Maple Leaf Cement (-5%) closed at its lower circuit in the cement sector."
Market watch: KSE-100 makes smart recovery after impressive corporate result
"Moving forward, we expect investor sentiments to remain negative and recommend investors to keep a close watch on news updates from the prime minister's trip to Saudi Arabia," Ladhani added.
Overall, trading volumes decreased to 223.9 million shares compared with Monday's tally of 235.4 million. The value of shares traded during the day was Rs6.7 billion.
Shares of 373 companies were traded. At the end of the day, 82 stocks closed higher, 278 declined and 13 remained unchanged.
The Bank of Punjab was the volume leader with 23 million shares, losing Rs0.57 to close at Rs10.83. It was followed by Pak Elektron with 18.6 million shares, gaining Rs0.29 to close at Rs26.97 and Lotte Chemical with 15.2 million shares, gaining one rupee to close at Rs18.22.
Foreign institutional investors were net sellers of Rs156.2 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.
Bears dominated the Pakistan Stock Exchange as the benchmark index dropped over 700 points in intra-day trading and ended the second successive session in the red.
The KSE-100 index tumbled in the early hours of trading after selling pressure mounted due to the lack of concrete news about how the critical economic challenges would be tackled. Investors remained wary and continued to book profits, which pushed the index below 38,000 points.
"The day's proceedings were also influenced by the sell-off in the Asian market; China's CSI-300 index of mainland stocks was down 2.5%, the Hang Seng index in Hong Kong fell 3% and Japan's Nikkei 225 index was down 2.7%," said Topline Securities in its report.
At the end of trading, the benchmark KSE 100-share Index recorded a decrease of 630.52 points or 1.64% to settle at 37,714.90.
Elixir Securities' analyst Murtaza Jafar said, "In line with our initial view, the KSE-100 index closed down 1.64% at 37,715 as most of the index-heavy stocks traded under pressure."
Market watch: KSE-100 ends three-day winning streak in volatile trade
A number of corporate results were announced during the day. Kot Addu Power (+1.42%) reported 1QFY19 earnings per share (EPS) of Rs3.5 whereas Kohat Cement (-3.94%) posted EPS of Rs2.6.
However, the major disappointment for the market came from financial results of Pak Suzuki Motor Company (-5%) and National Bank of Pakistan (-3.27%). The bank announced 3Q EPS of Rs1.73, taking 9MCY18 EPS to Rs7.60.
The Economic Coordination Committee (ECC) is scheduled to meet on Wednesday to review and finalise modalities for the issuance of no-objection certificate for the purchase of 66% shareholding by Shanghai Electric Power in K-Electric (-1.49%) and decide on the pending increase in electricity tariffs.
"All eyes will be focused on the ongoing PM visit to Saudi Arabia; any development about potential flows for Pakistan's foreign currency reserves and/or oil supply on deferred payments will lift investor sentiments," the analyst said.
KSE-100 recovers 2.4% after losing ground for three weeks
JS Global analyst Danish Ladhani said the stock market came under selling pressure amid Prime Minister Imran Khan's two-day visit to Riyadh.
Cement, financial, auto and energy were among the sectors that dragged the market down. Oil and Gas Development Company (-1.8%), Pakistan Petroleum (-2.2%), Habib Bank (-3%), MCB Bank (-0.8%), Pakistan Oilfields (-0.1%), United Bank (-1.5%), Fauji Fertiliser (-0.7%) and Lucky Cement (-4.1%) remained the major index dampeners.
"From auto stocks, Pak Suzuki Motor Company (-5%) closed limit down as the company announced 9MCY18 EPS of Rs16.92 with no cash payout while Maple Leaf Cement (-5%) closed at its lower circuit in the cement sector."
Market watch: KSE-100 makes smart recovery after impressive corporate result
"Moving forward, we expect investor sentiments to remain negative and recommend investors to keep a close watch on news updates from the prime minister's trip to Saudi Arabia," Ladhani added.
Overall, trading volumes decreased to 223.9 million shares compared with Monday's tally of 235.4 million. The value of shares traded during the day was Rs6.7 billion.
Shares of 373 companies were traded. At the end of the day, 82 stocks closed higher, 278 declined and 13 remained unchanged.
The Bank of Punjab was the volume leader with 23 million shares, losing Rs0.57 to close at Rs10.83. It was followed by Pak Elektron with 18.6 million shares, gaining Rs0.29 to close at Rs26.97 and Lotte Chemical with 15.2 million shares, gaining one rupee to close at Rs18.22.
Foreign institutional investors were net sellers of Rs156.2 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.