Market watch: KSE-100 falls on bearish global oil, stock markets
Shares of 431 companies were traded. At the end of the day, 120 stocks closed higher. PHOTO: FILE
Pakistan stock market, after ending one session in the positive zone, failed to sustain the upward momentum on Tuesday as the benchmark KSE-100 index recorded losses and closed below 42,000 points.
A decline in global oil prices during the session, coupled with struggling world equities, sparked volatility, leading to bearish trading. Oil sector stocks bore the brunt of the dip in global crude prices, which fell for the fifth consecutive session on Tuesday, and most closed with losses.
Earlier, trading began on a positive note and the index powered past 42,500 points. However, selling pressure emerged later and henceforth, the index depicted a rollercoaster ride.
By midday, all the gains were erased and the KSE-100 entered the negative region. Selling pressure intensified in the final hours and dragged the index down.
At close, the benchmark KSE-100 index recorded a decrease of 310.56 points, or 0.73%, to settle at 41,985.19 points.
Arif Habib Limited, in its report, stated that the market saw selling pressure by the end of the session after posting gains of 233 points earlier.
The refinery sector particularly performed well with multiple stocks hitting the upper circuit. Similarly, cement and oil marketing sectors saw buying interest, which helped the index post gains.
Besides, the chemical sector remained in the limelight, registering good gains in stock prices.
Selling pressure brought the index down by 616 points, including the erosion of earlier gains, which was caused by the closing of leveraged positions by retail investors. The index closed down by 310 points.
Oil and gas marketing companies posted trading volumes of 149 million shares, followed by cement firms (100 million) and refineries (89.3 million).
Among individual stocks, Hascol Petroleum topped the volumes list with 133.9 million shares, followed by Pakistan International Bulk Terminal (66 million) and Power Cement (57.9 million), the report said.
JS Global analyst Maaz Mulla said profit-booking was witnessed at the bourse and the KSE-100 index largely remained in the red territory. The index touched intraday high of +233 points and intraday low of -383 points.
Overall volumes stood at 884 million shares while traded value stood at $168 million.
Top volume leaders of the bourse were Hascol Petroleum (-7.5%), Pakistan International Bulk Terminal (-1.7%), Power Cement (-4.4%) and Pakistan Refinery (-7.3%), which contributed a cumulative 297 million shares to the total volumes.
“Pressure was witnessed on steel and cement stocks as investors opted to offload positions,” he said.
Amreli Steels (-3%), International Industries (-2.8%), International Steels (-2.6%), Mughal Iron and Steel Industries (-2.9%), Power Cement (-4.4%), Fauji Cement (-3.1%), Pioneer Cement (-2.9%), Maple Leaf Cement (-3.1%) and DG Khan Cement (-2.1%) were major losers of the abovementioned sectors.
“Going forward, we expect the market to continue the similar trend and recommend investors to see any upside as an opportunity to sell,” he said. “However, we recommend that any downside should be viewed as an opportunity to buy in cement, steel, consumer and banking sectors.”
Overall, trading volumes rose to 884.4 million shares compared with Monday’s tally of 748.9 million. The value of shares traded during the day was Rs27.9 billion.
Shares of 431 companies were traded. At the end of the day, 120 stocks closed higher, 293 declined and 18 remained unchanged.
Hascol Petroleum was the volume leader with 134 million shares, losing Rs1.73 to close at Rs21.42. It was followed by Pakistan International Bulk Terminal with 66 million shares, losing Rs0.23 to close at Rs12.99 and Power Cement with 58.1 million shares, losing Rs0.48 to close at Rs10.37.
Foreign institutional investors were net buyers of Rs4.48 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.