Market watch: Bourse turns bearish, sheds 400 points
Shares of 367 companies were traded. At the end of the day, 123 stocks closed higher. PHOTO: REUTERS
The two-day bull run came to an end at the Pakistan Stock Exchange on Thursday as the KSE-100 index dropped 400 points, driven by political uncertainty and increase in international coal prices.
The jump in coal prices dampened investor sentiment and pulled the KSE-100 index below the 46,000-point mark once again as it sparked inflationary concerns.
Moreover, persistent volatility of the rupee dented the spirit of investors, who opted to offload their holdings. Widespread profit-booking struck cement, financial and oil sectors, which closed mostly in the red.
Following a brief positive open, the market began its descent as participants rushed to sell their stockholdings. A few attempts made to wipe out the losses proved futile.
The market fell steadily and closed the session on a negative note. At close, the benchmark KSE-100 index recorded a decrease of 399.72 points, or 0.86%, to settle at 45,940.04.
A report of Arif Habib Limited stated that the market remained dull as sustainability concerns arose over the psychological level of 46,000.
“Cement sector stayed under pressure due to higher international coal prices,” it said. “In the fertiliser sector, Engro Fertilisers was in the limelight as it announced financial results in line with market expectations.”
Investors were unable to digest the index level of 46,000 as profit-taking was observed across the board in the last trading hour, which led the market to close in the red zone, the report said.
JS Global analyst Waqar Iqbal said that profit-taking was witnessed at the start of trading session, which continued throughout the day. The benchmark index closed at 45,940, losing 400 points day-on-day.
Top volume leaders of the day were Telecard, TPL Properties, WorldCall Telecom, TPL Corp and The Bank of Punjab.
“Going forward, a slight correction can be expected and we advise investors to book profits at current levels,” the analyst said.
Overall trading volumes increased to 286 million shares compared with Wednesday’s tally of 243.1 million. The value of shares traded during the day was Rs9.3 billion.
Shares of 367 companies were traded. At the end of the day, 123 stocks closed higher, 222 declined and 22 remained unchanged.
Telecard Limited was the volume leader with 45.4 million shares, losing Rs0.33 to close at Rs17.51. It was followed by TPL Properties with 16.95 million shares, losing Rs0.3 to close at Rs34.19 and WorldCall Telecom with 13.7 million shares, losing Rs0.03 to close at Rs2.18.
Foreign institutional investors were net sellers of Rs781.2 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.