Market watch: Stocks retreat on global tensions

Benchmark index decreases 157.46 points to settle at 42,323.30

KARACHI: After a phenomenal rally in the preceding session, the index finished the last trading day of the week on a negative note amid global equity sell off following uncertainty over outcome of US Iran conflict.

The index shot up from the moment trading began; however, the momentum could not be sustained as cautious trading dragged the index lower. Investor concerns emanated over political noise and high inflation data. Moreover, the constant foreign outflow in the past few days also dented sentiments.

On the international front, oil chain reacted to the jump in global oil prices which went up on the news of US attack on Iranian military commander.

"POL reacted most to hike in oil prices. Similarly, among OMCs, PSO made a rapid ascent. Majority of the stocks remained red by the end of session due to profit booking and concerns over regional security," stated an AHL report.

At close, the benchmark KSE 100-share Index recorded a decrease of 157.46 points, or 0.37%, to settle at 42,323.30.

JS Global analyst Maaz Mulla said equities closed its week Friday on a negative note with benchmark KSE-100 Index shedding 157 points, closing at 42,323 levels, down 0.4%.

"Market remained range bound throughout the session as investors booked profit as the market had already gained 4.3% in the last two trading sessions."

HBL (-2.9%), ENGRO (-2.9%), UBL (-1.5%), SEARL (-2.4%) and MARI (-1.3%) cumulatively contributed towards the negative index close. Traded value stood slightly low at $95 million, down 14% and volume stood at 323 million shares, down 22%. Furthermore, major contribution to total market volume came from TRG (+4.1%), UNITY (-3.8%), KEL (-3.1%), PAEL (-1.7%), BOP (-1.6%) and FFL (-4.3%).

"Moving forward, we expect the market to remain positive in the short-term," he added.

Overall, trading volumes fell to 322.9 million shares compared with Thursday's tally of 412.4 million. The value of shares traded during the day more than doubled to Rs14.7 billion.

Shares of 360 companies were traded. At the end of the day, 127 stocks closed higher, 218 declined and 15 remained unchanged.

TRG Pakistan was the volume leader with 23.8 million shares, gaining Rs1.11 to close at Rs28.16. It was followed by Unity Foods with 20.8 million shares, losing Rs0.66 to close at Rs16.59 and K-Electric Limited with 20.2 million shares, losing Rs0.15 to close at Rs4.62.

Foreign institutional investors were net sellers of Rs141.1 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.