The stock market fell on the last trading day of the week where the KSE-100 index displayed volatility and moved between intraday high and low of 222 and 190 points respectively.
The benchmark index, after midday, succumbed to selling pressure from exploration and production, and cement sectors. A lack of positive triggers kept investors cautious throughout the trading session.
Unimpressive financial results in the cement and exploration and production sectors dragged them down while a drop in global crude oil prices triggered sell-off in oil sector stocks.
Earlier, the KSE-100 opened on a positive note but selling pressure pulled the index down. Interest was noted in bank and fertiliser stocks, however, profit-taking in other sectors prevented the index from staying in the green.
At close, the benchmark KSE-100 index recorded a decrease of 116.68 points, or 0.27%, to settle at 42,530.67 points.
Arif Habib Limited, in its report, stated that the market opened on a positive note with +98 points and 6.3 million shares changing hands at the opening bell.
“During the two sessions, the market traded in a range of -190 points and +222 points. It closed the day in the red,” it said.
“Selling pressure started building since the first session, with profit-booking in exploration and production, cement, steel and pharmaceutical sectors. Buying activity was registered in fertiliser and banking sectors, which helped the index post gains.”
The second session began with Pakistan Petroleum announcing its financial results that brought its stock price down due to lower-than-anticipated earnings.
Oil and gas marketing companies posted high volumes of 67.7 million shares, followed by refineries (65.5 million) and technology firms (47.6 million).
Individually, stocks that contributed positively to the index included UBL (+32 points), Engro Corporation (+29 points), Hubco (+21 points), Hascol Petroleum (+12 points) and HBL (+12 points).
Stocks that contributed negatively were Pakistan Petroleum (-41 points), Lucky Cement (-24 points), Nestle (-17 points), Engro Fertilisers (-13 points) and Oil and Gas Development Company (-12 points).
JS Global analyst Maaz Mulla said the PSX benchmark index blew hot and cold, touching intraday high of +222 points and stooping to a low of -190 points. Volumes decreased by 41% day-on-day to 526 million shares compared to 885 million shares in the previous trading session.
Hascol Petroleum (+4.1%), Byco Petroleum (-5.8%) and Pakistan International Bulk Terminal (-1.1%) led the volumes with a cumulative 140 million shares changing hands, Mulla stated.
Selling pressure continued in the cement and exploration and production sectors where Power Cement (-2.3%), Pioneer Cement (-2.6%), Maple Leaf Cement (-2.5%), Cherat Cement (-2%), DG Khan Cement (-1.5%), Pakistan Petroleum (-2.6%) and Oil and Gas Development Company (-0.9%) lost ground.
Pakistan Petroleum, from the exploration and production sector, declared its FY20 results, where the company posted earnings per share of Rs18.16 and cash payout of Re1 per share, he added.
Moreover, Amreli Steels (-2.9%) from the steel sector declared its FY20 result, posting a loss of Rs3.79 per share with no cash payout.
“Going forward, we expect the market to continue the similar trend and recommend investors to see any upside as an opportunity to sell,” the analyst 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 fell to 526.2 million shares compared with Thursday’s tally of 885 million. The value of shares traded during the day was Rs17.6 billion.
Shares of 431 companies were traded. At the end of the day, 170 stocks closed higher, 249 declined and 12 remained unchanged.
Hascol Petroleum was the volume leader with 61.1 million shares, gaining Rs0.87 to close at Rs22.08. It was followed by Byco Petroleum with 54.6 million shares, losing Rs0.70 to close at Rs11.29 and Pakistan International Bulk Terminal with 25.7 million shares, losing Rs0.15 to close at Rs13.55.
Foreign institutional investors were net sellers of Rs488.2 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.
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