Market watch: Stocks lose nearly 500 points amid uncertainty

Benchmark KSE-100 index falls 1.4% to settle at 34,681.72

KARACHI: The stock market closed lower on Tuesday amid moderate trading, restricted by economic and political uncertainty.

Mid-session support was witnessed due to the rupee's recovery and State Bank governor's affirmation of economic stability after rate hike and rupee depreciation.

Falling global crude oil prices, investor concern over foreign outflows, rupee instability and uncertainty over SBP policies to meet conditions of a $6-billion International Monetary Fund (IMF) bailout package ahead of IMF board's approval on July 3 played the role of catalysts in bearish close of the market.

At the end of trading, the benchmark KSE 100-share Index recorded a decrease of 487.10 points, or 1.4%, to settle at 34,681.72.

JS Global analyst Maaz Mulla said equities closed on a bearish note at 34,682 after the benchmark KSE-100 index shed 487 points.

He said during the session, the bourse touched a high and low of +17 points and -560 points respectively. "On the news front, the State Bank of Pakistan (SBP) governor stated that Pakistan had fulfilled all commitments made with the IMF for a $6-billion loan programme and the fund's executive board would take decision on the bailout package during a meeting scheduled next month," he said.

The cement sector closed lower as investors opted to book profits, where major players such as Pioneer Cement (-4.5%), DG Khan Cement (-4%), Maple Leaf Cement (-4.1%), Cherat Cement (-3.9%) and Lucky Cement (-2%) closed in the red despite increase of Rs20 per bag in cement prices in the northern region.

Pakistan Petroleum Limited (-1.5%) and Pakistan Oilfields (-1.4%) from the exploration and production sector fell as crude oil prices edged lower in the international market.

Volume leaders for the day were Maple Leaf Cement (-4.1%), TRG Pakistan (-4.6%) and Pakistan International Bulk Terminal (-0.3%), which recorded cumulative trading in 28 million shares, the analyst stated.

"Moving forward, we expect the market to remain choppy and volatile until the budget is passed in the National Assembly," he added.

Overall, trading volumes decreased to 104.13 million shares compared with Monday's tally of 128.14 million. The value of shares traded during the day was Rs4.04 billion.

Shares of 319 companies were traded. At the end of the day, 61 stocks closed higher, 239 declined and 19 remained unchanged.

Maple Leaf Cement was the volume leader with 14.7 million shares, losing Rs1.09 to close at Rs25.29. It was followed by TRG Pakistan with 7.3 million shares, losing Rs0.82 to close at Rs16.93 and Pakistan International Bulk Terminal with 5.6 million shares, losing Rs0.03 to close at Rs8.59.

Foreign institutional investors were net sellers of Rs451.2 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.