Market watch: KSE-100 drops 165 points amid choppy trading
Benchmark index decreases 0.39% to settle at 41,603.71
Benchmark index decreases 0.39% to settle at 41,603.71. PHOTO: AFP
KARACHI:
The stock market endured a bearish session on Wednesday amid choppy trading owing to developments on the political front coupled with the Oil and Gas Regulatory Authority's (Ogra) proposal of a 214% hike in gas prices.
On Tuesday, Ogra forwarded a summary to the federal government seeking approval for the increase in gas prices for domestic consumers with effect from January 2020.
In addition to that, a special court sentenced former president and army chief Pervez Musharraf to death in a treason case. Both news substantially impacted direction of the market during trading hours.
Earlier, trading began on a negative note and investors resorted to profit booking. The index then managed to recover the initial losses and traded in the positive zone in early hours, however, weak investor sentiment in the wake of multiple negative triggers wiped out all the gains, pushing the index into the negative zone.
At close, the benchmark KSE 100-share Index recorded a decrease of 164.95 points, or 0.39%, to settle at 41,603.71.
JS Global analyst Maaz Mulla stated that Pakistan equities closed on a negative note with the benchmark KSE-100 index shedding 165 points and closing at 41,604.
"The market remained choppy following Tuesday's news regarding the death sentence handed to former president Pervez Musharraf," he said.
Moreover, he said, Ogra had decided to increase gas prices for the domestic consumers by 214%, which was another reason for the decline in the KSE-100 index.
Oil and Gas Development Company (-3.1%), Pakistan Petroleum (-2.6%), Lucky Cement (-1.2%), Sui Northern Gas Pipelines (-2.8%), Bank AL Habib (-1.2%) and Pakistan Oilfields (-0.7%) contributed to the negative close.
Traded value for the day stood at $78 million, down 31% and volumes came in at 276 million shares, down 33%.
Major contribution to the total market volume came from The Bank of Punjab (+2.5%), Unity Foods (-2.5%), Fauji Foods (-3.3%) and K-Electric (-3%).
"We recommend any major dips in the market should be taken as an opportunity to accumulate value stocks," the analyst added.
Topline Securities stated that the index failed to maintain its positive momentum on the back of political tensions after a special court decision in the trial of ex-president Pervez Musharraf and profit-taking in the exploration and production sector," it said.
Oil and Gas Development Company and Pakistan Petroleum fell 3.15% and 3% respectively as investors decided to book profits. Both stocks had made significant gains in recent sessions, the report stated.
Overall, trading volumes dropped to 276.2 million shares compared with Tuesday's tally of 412.3 million. The value of shares traded during the day was Rs12.2 billion.
Shares of 366 companies were traded. At the end of the day, 120 stocks closed higher, 220 declined and 26 remained unchanged.
The Bank of Punjab was the volume leader with 16 million shares, gaining Rs0.3 to close at Rs12.09. It was followed by Unity Foods with 14.3 million shares, losing Rs0.39 to close at Rs15.15 and Fauji Foods with 13.2 million shares, losing Rs0.55 to close at Rs16.26.
Foreign institutional investors were net buyers of Rs254.2 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.
The stock market endured a bearish session on Wednesday amid choppy trading owing to developments on the political front coupled with the Oil and Gas Regulatory Authority's (Ogra) proposal of a 214% hike in gas prices.
On Tuesday, Ogra forwarded a summary to the federal government seeking approval for the increase in gas prices for domestic consumers with effect from January 2020.
In addition to that, a special court sentenced former president and army chief Pervez Musharraf to death in a treason case. Both news substantially impacted direction of the market during trading hours.
Earlier, trading began on a negative note and investors resorted to profit booking. The index then managed to recover the initial losses and traded in the positive zone in early hours, however, weak investor sentiment in the wake of multiple negative triggers wiped out all the gains, pushing the index into the negative zone.
At close, the benchmark KSE 100-share Index recorded a decrease of 164.95 points, or 0.39%, to settle at 41,603.71.
JS Global analyst Maaz Mulla stated that Pakistan equities closed on a negative note with the benchmark KSE-100 index shedding 165 points and closing at 41,604.
"The market remained choppy following Tuesday's news regarding the death sentence handed to former president Pervez Musharraf," he said.
Moreover, he said, Ogra had decided to increase gas prices for the domestic consumers by 214%, which was another reason for the decline in the KSE-100 index.
Oil and Gas Development Company (-3.1%), Pakistan Petroleum (-2.6%), Lucky Cement (-1.2%), Sui Northern Gas Pipelines (-2.8%), Bank AL Habib (-1.2%) and Pakistan Oilfields (-0.7%) contributed to the negative close.
Traded value for the day stood at $78 million, down 31% and volumes came in at 276 million shares, down 33%.
Major contribution to the total market volume came from The Bank of Punjab (+2.5%), Unity Foods (-2.5%), Fauji Foods (-3.3%) and K-Electric (-3%).
"We recommend any major dips in the market should be taken as an opportunity to accumulate value stocks," the analyst added.
Topline Securities stated that the index failed to maintain its positive momentum on the back of political tensions after a special court decision in the trial of ex-president Pervez Musharraf and profit-taking in the exploration and production sector," it said.
Oil and Gas Development Company and Pakistan Petroleum fell 3.15% and 3% respectively as investors decided to book profits. Both stocks had made significant gains in recent sessions, the report stated.
Overall, trading volumes dropped to 276.2 million shares compared with Tuesday's tally of 412.3 million. The value of shares traded during the day was Rs12.2 billion.
Shares of 366 companies were traded. At the end of the day, 120 stocks closed higher, 220 declined and 26 remained unchanged.
The Bank of Punjab was the volume leader with 16 million shares, gaining Rs0.3 to close at Rs12.09. It was followed by Unity Foods with 14.3 million shares, losing Rs0.39 to close at Rs15.15 and Fauji Foods with 13.2 million shares, losing Rs0.55 to close at Rs16.26.
Foreign institutional investors were net buyers of Rs254.2 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.