Market watch: KSE-100 falls over dispiriting BOP data
Shares of 346 companies were traded. At the end of the day, 145 stocks closed higher. PHOTO: REUTERS
Trading remained lacklustre at the Pakistan Stock Exchange on Tuesday as the much-awaited release of balance of payments (BOP) data, which showed the widening of current account deficit, dented investor confidence.
The benchmark KSE-100 index lost 163 points after a two-day bull run as investors opted to stay on the sidelines.
Despite stark differences between Pakistan Bureau of Statistics (PBS) and the State Bank of Pakistan’s (SBP) import figures, the balance of payments gap widened to a 40-month high in November 2021, which instilled fear among investors, who then decided to book profit.
Furthermore, investor speculation ahead of the announcement of mini-budget, scheduled for the current week, kept the overall trading environment depressed.
Earlier, the session started with a brief rally. However, profit-taking by jittery investors pulled the index down in the early hours of trading.
After recording minor ups and downs, the KSE-100 index endured another round of selling later in the day. It, however, managed to recoup some of the losses due to buying by investors in the last hour.
At close, the benchmark KSE-100 index recorded a decline of 162.88 points, or 0.37%, to settle at 44,177.07.
A report of Arif Habib Limited stated that the market remained choppy as the current account deficit increased to $1.9 billion in November 2021. The primary reason behind the deficit was 57% year-on-year increase in imports to $7.3 billion.
Profit-taking occurred in the first trading hour and then the market saw bulls and bears battle throughout the day. Volumes remained low whereas the market continued to trade sideways with hefty volumes in third-tier stocks.
Sectors contributing to the performance included exploration and production (-57 points), commercial banks (-51 points), fertiliser (-45 points), cement (-39 points) and oil marketing companies (-14 points).
JS Global analyst Muhammad Mubashir said that the KSE-100 index touched intra-day high of 44,594 points, but could not sustain the momentum in the wake of profit-taking across the board. It closed in the red zone at 44,177, down 163 points day-on-day.
Total traded volume stood at 223 million shares with WorldCall Telecom, TRG Pakistan, Cnergyico Pk, Fauji Foods and Telecard being the volume leaders.
The primary reason for the increased volume in Cnergyico Pk was its announcement showing the intention to acquire Puma Energy Pakistan.
Another major news was the increase in the current account deficit, which also dampened market sentiment.
“Going forward, we recommend investors to adopt a buy-on-dip strategy primarily in oil and gas exploration, oil marketing companies and cyclical sectors,” the analyst said.
Overall trading volumes decreased to 223.1 million shares compared with Monday’s tally of 238.5 million. The value of shares traded during the day was Rs8.7 billion.
Shares of 346 companies were traded. At the end of the day, 145 stocks closed higher, 171 declined and 30 remained unchanged.
WorldCall Telecom was the volume leader with 21.7 million shares, losing Rs0.07 to close at Rs2.12. It was followed by TRG Pakistan with 20.9 million shares, gaining Rs1.83 to close at Rs116.24 and Cnergyico Pk with 18.7 million shares, gaining Rs0.36 to close at Rs6.53.
Foreign institutional investors were net buyers of Rs198.35 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.