KSE-100 falls as selling pressure weighs on sentiment

Benchmark index decreases 240.04 points to settle at 42,299.19

KARACHI: The benchmark KSE-100 index closed lower on Tuesday as the stock market came under pressure amid uncertainty over the monetary policy announcement later in the day, which, as expected by many, left the interest rate unchanged.

A plunge in global crude oil prices stopped investors from accumulating stocks with sellling pressure weighing on sentiment. The market hit an intra-day low of 386 points, however, it later recouped some of the losses.

At close, the benchmark KSE-100 index recorded a decrease of 240.04 points, or 0.56%, to settle at 42,299.19.

Arif Habib Limited, in its report, stated that global stock markets were roiled by the outbreak of coronavirus in China, which also impacted commodity markets.

The banking sector sustained selling pressure that kept stock prices on the lower side. The cement sector continued to lead the volume with trading in 60.9 million shares, followed by oil and gas marketing companies (27.6 million) and banks (12.4 million), the report added.

JS Global analyst Maaz Mulla, in his report, stated bulls lost control in Tuesday’s trading session as the index touched an intra-day low of -386 points and closed at 42,299.

Major losers of the day were HBL (-1.2%), MCB Bank (-1.3%), Pakistan Petroleum (-1%), Dawood Hercules (-1.7%), Engro (-0.7%) and Fauji Fertiliser Company (-1%), which cumulatively erased 135 points from the KSE-100 index.

ICI (+5.5%) from the chemical sector declared its 1HFY20 result, where the company posted earnings per share of Rs20.05 and cash payout of Rs11 per share.

Furthermore, active participation was witnessed in the cement sector where Kohat Cement (+3%), Maple Leaf Cement (+0.6%), Cherat Cement (+1%) and DG Khan Cement (+0.4%) remained in the green zone.

On the flipside, Pioneer Cement (-2.3%), Fauji Cement (-1.6%) and Lucky Cement (-0.5%) went down.

“Moving forward, we recommend investors to stay cautious,” stated Mulla in the report.

Overall, trading volumes decreased to 189 million shares compared with Monday’s tally of 198.5 million. The value of shares traded during the day was Rs6.7 billion.

Shares of 356 companies were traded. At the end of the day, 130 stocks closed higher, 206 declined and 20 remained unchanged.

Maple Leaf Cement was the volume leader for the second day, with 29.7 million shares, gaining Rs0.16 to close at Rs24.99. It was followed by Hascol with 25.4 million shares, gaining Rs1.32 to close at Rs25.47 and Unity Foods with 9.9 million shares, gaining Rs0.02 to close at Rs14.11.

Foreign institutional investors were net sellers of Rs595.5 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.