Stocks retreat, get closer to 41,000 points
Shares of 363 companies were traded. At the end of the day, 38 stocks closed higher, 311 declined and 14 remained unchanged. PHOTO: FILE
Pakistan Stock Exchange (PSX) on Tuesday as market struggled to sustain gains in rollover week due to absence of major positive triggers, which pushed KSE-100 index close to 41,000-point mark. The index stayed in green zone in initial hours, touching intra-day high of 42,523.51 points. Bears soon took charge of the bourse, which came under pressure owing to economic uncertainty. A host of corporate results announced during the day failed to attract market players, who refrained from taking fresh positions. Furthermore, profit-taking emerged in late trading, denting KSE-100 index by erasing gains.
At close, the benchmark KSE-100 index recorded a decrease of 157.20 points, or 0.37%, to settle at 42,190.03. Topline Securities, in its report, said that Pakistan equities had a range-bound day. KSE-100 index opened in green zone and hit intra-day high of 42,524 (+176 points, or 0.42%). At that level, profit-taking started and pushed the index towards intra-day low of 42,157 (-191 points, or 0.45%). The market eventually settled at 42,190 (-157 points, or 0.37%). During the day, many companies announced their quarterly results.
Power, fertiliser and exploration and production-sector stocks contributed positively to the index where Hub Power Company, Dawood Hercules Corporation, Pakistan Oilfields, Engro Fertilisers and Engro Corporation added a total of 100 points, it said. On the flip side, TRG Pakistan, Systems Limited and DG Khan Cement witnessed some profit-taking as they lost 118 points collectively. Around 195 million shares were traded at the bourse while total value came in at Rs6.2 billion. Hascol Petroleum led the volumes chart with trading in 35.2 million shares, Topline added. Arif Habib Limited, in its report, said that due to rollover week, PSX remained under pressure. Despite starting off in the green, the market was unable to maintain positive momentum and spent most of the trading session in the red.
Major financial result announcements were made but investor participation remained subdued as volumes decreased. “Third-tier stocks continued to lead in terms of volumes,” it said. The index closed at 42,190.02, down by 157.20 points (-0.37% day-on-day). Sectors contributing to the performance included technology and communication (-111.9 points), cement (-46.6 points), automobile assemblers (-13.8 points), commercial banks (-11.9 points) and chemical (-10.9 points). Volumes decreased from 226.7 million shares to 195.4 million shares (-13.8%). Traded value increased by 3.5% to $28.4 million against $27.4 million a day ago. Stocks that contributed significantly to the volumes were Hascol Petroleum, WorldCall Telecom, G3 TechClassB, Nishat Chunian Power and Pakistan Telecommunication Company, Arif Habib report added. JS Research analyst Mubashir Anis Naviwala said that the bourse witnessed range-bound activity and KSE-100 index closed at 42,190, losing 157 points. Traded volumes stood at 195 million shares where Hascol Petroleum (+1.8%), WorldCall Telecom (-2.5%), G3 TechClassB (-64%), Nishat Chunian Power (-5.3%) and Pakistan Telecommunication Company (+2.6%) were the major contributors.
“Going forward, we expect range-bound activity to continue,” the analyst said. “We recommend investors to stay cautious at current levels and wait for dips for any fresh buying.” Overall trading volumes decreased to 195.4 million shares compared with Monday’s tally of 226.7 million. The value of shares traded during the day was Rs6.2 billion. Shares of 334 companies were traded. At the end of the day, 96 stocks closed higher, 208 declined and 30 remained unchanged.
Hascol Petroleum was the volume leader with 35.2 million shares, gaining Rs0.12 to close at Rs6.81. It was followed by WorldCall Telecom with 13 million shares, losing Rs0.04 to close at Rs1.55 and G3 TechClassB with 11.1 million shares, losing Rs0.55 to close at Rs0.31. Foreign investors were net sellers of Rs55.2 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.