Market watch: Stocks fall as market fails to sustain gains

Benchmark KSE-100 index drops 255.57 points to settle at 45,817.68

KARACHI:

The Pakistan Stock Exchange witnessed a volatile trading session on Tuesday, as the benchmark KSE-100 index after staying range bound throughout the day, shed around 255 points to settle below the psychological barrier of 46,000 points.

Despite fresh appreciation of the rupee against the US dollar, the sentiment remained depressed as investors opted to stay on the sidelines. Subsequently, profit-taking was observed amid thin volumes.

Earlier, the trading session commenced with a brief rally when the index touched intra-day high of 46,184 points. However, the market could not sustain the uptrend and succumbed to profit-taking.

The index registered a gradual decline during the day and hit intra-day low of 45,783 points in the final hours of trading to eventually settle below the 46,000-point barrier.

At close, the benchmark KSE-100 index recorded a decrease of 255.57 points, or 0.55%, to settle at 45,817.68 points.

Topline Securities, in its report, said that Pakistan equities closed negative, down 0.55% on a day-on-day basis.

After a slight positive opening, the market traded sideways where the benchmark KSE-100 index touched intra-day low of 290 points due to investors’ concern over the ongoing Extended Fund Facility (EFF) programme of the IMF, it said.

“On the results front, Indus Motor Company announced its third-quarter 2021-22 earnings per share of Rs65.11, along with dividend per share of Rs26,” Topline said.

“Moreover, Fauji Cement Company announced its third-quarter 2021-22 earnings per share of Rs0.89, while Bank Alfalah reported its first-quarter (Jan-Mar) 2022 earnings per share of Rs2.83,” the report added.

“Kohat Cement Company announced its third-quarter 2021-22 earnings per share of Rs8.19.”

A report of Arif Habib Limited stated that the Pakistan Stock Exchange witnessed a volatile session, as the KSE-100 index opened on a positive note but failed to sustain the green zone “due to six-month Kibor reaching a 13-year high at 14.10%, which pulled the market down into the red zone giving bears an upper hand”.

The trading session remained dull, although hefty volumes were observed in third-tier stocks, it said.

“Sectors contributing to the performance included exploration and production (-64.6 points), technology (-38.7 points), power (-36.03 points) and cement (-33.2 points).”

JS Global analyst Neelam Naz said that profit-taking continued across the board as the benchmark index closed at 45,818, down 256 points day-on-day.

“The market opened in the green zone and touched an intra-day high of 46,184 points, however, it was unable to sustain the momentum,” she said.

G3 Technologies (+5.9%), Lotte Chemical (+7.5%), Hum Network (-2.9%), WorldCall Telecom (0%) and Telecard Limited (+1.5%) were the highest contributors in terms of volumes.

“Major index draggers were Hub Power Company, TRG Pakistan, Pakistan Petroleum Limited, Lucky Cement and Pakistan Oilfields Limited,” the analyst said, adding “going forward, we recommend investors to avail any dips below 46,000 points as a buying opportunity in refineries, banking, oil and gas and cyclical sectors.”

Overall trading volumes decreased to 210.2 million shares compared with Monday’s tally of 368.8 million. The value of shares traded during the day was Rs6.2 billion.

Shares of 324 companies were traded. At the end of the day, 90 stocks closed higher, 211 declined and 23 remained unchanged.

G3 Technologies was the volume leader with 18.9 million shares, gaining Rs0.65 to close at Rs11.72. It was followed by Lotte Chemical with 17.9 million shares, gaining Rs1.53 to close at Rs21.96 and Hum Network with 14.3 million shares, losing Rs0.25 to close at Rs8.26.

Foreign institutional investors were net sellers of Rs89 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.