Market watch: Bears hold sway on stock market

Benchmark KSE-100 index drops 194.97 points to settle at 41,186.86

KARACHI:

The Pakistan Stock Exchange (PSX) extended its losses and retreated nearly 200 points on Wednesday in the absence of major positive triggers that could provide direction to the market. A day ago, the bourse had dropped 469 points.

Investor sentiment was dampened by uncertainty in global equity markets on resurging coronavirus cases. Moreover, falling global crude oil prices also took a toll on the domestic bourse.

A host of financial results were released during the trading session, however, they failed to turn direction of the market.

The benchmark KSE-100 index, following a brief open in the positive zone, crawled downwards. However, some of the losses were wiped off shortly afterwards and the bears and bull continued to wrestle for the rest of the session.

A buying spree at midday helped the market to inch up marginally. Despite weak investor sentiment, the automobile sector recorded gains.

At close, the benchmark KSE-100 index recorded a decrease of 194.97 points, or 0.47%, to settle at 41,186.86 points.

Arif Habib Limited, in its report, stated that the market traded in a range of +306 points and -312 points. It closed the session in the red.

“Lately, investors were discounting back-to-back good corporate results on concerns over rising Covid-19 cases as well as end of earnings season that pushed the market to current levels,” it said.

Exploration and production sector stocks went down, with the exception of Pakistan Petroleum, following the downtrend in international crude oil prices, which declined 2.5% overnight, the report said, adding that Pakistan Petroleum, on the other hand, saw brisk buying in the last half hour.

Among construction sector stocks, Shabbir Tiles and Ceramics hit its upper circuit, recording significant trading volumes in the process, on the expectation of better results and construction activity at the behest of the government.

Sectors contributing to the performance included banks (-85 points), cement (-67 points), textile (-44 points), pharmaceutical (-37 points) and oil and gas marketing (-19 points).

Individually, stocks that contributed positively to the index included Hub Power Company (+96 points), Pakistan Petroleum (+19 points), Thal Limited (+13 points), Ghani Glass (+13 points) and Dawood Hercules (+10 points).

Stocks that contributed negatively were Lucky Cement (-48 points), The Searle Company (-39 points), UBL (-30 points), HBL (-27 points) and Pakistan Oilfields (-23 points).

Overall, trading volumes fell to 368.4 million shares compared with Tuesday’s tally of 481 million. The value of shares traded during the day was Rs15.1 billion.

Shares of 415 companies were traded. At the end of the day, 151 stocks closed higher, 246 declined and 18 remained unchanged.

Unity Foods was the volume leader with 60.2 million shares, gaining Rs0.46 to close at Rs23.17. It was followed by Pakistan International Bulk Terminal with 31.3 million shares, losing Rs0.05 to close at Rs13.26 and Hascol Petroleum with 26.9 million shares, gaining Rs0.21 to close at Rs15.89.

Foreign institutional investors were net sellers of Rs652.8 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.