Stocks dip 1,704 points in absence of cues

Heavyweights drag KSE-100 index down as earnings season draws to a close

KARACHI:

The Pakistan Stock Exchange (PSX) lost further ground on Wednesday as the benchmark KSE-100 index dropped over 1,700 points, mainly due to the absence of major triggers required to encourage investors to build their positions.

A day ago, the market had shed 1,521 points, driven by profit-taking at higher valuations. Though the market started Wednesday's session on a positive note and remained in the green zone for some time, it started falling before midday. The index touched the intra-day low at 159,217 in late trading and ended slightly above that level.

Among key economic news, the International Monetary Fund (IMF) will take up Pakistan's case in early December. Also, the government has launched a Google Chromebook assembly line, which will produce 500,000 Chromebooks annually.

At the close of trading, the KSE-100 index recorded a decline of 1,703.58 points, or 1.06%, and settled at 159,578.19.

Topline Securities, in its market review, said that the KSE-100 index ended the session on a negative note on Wednesday. "Throughout the day, the benchmark index oscillated between the intra-day high of 162,052 and the low of 159,217. The bearish sentiment was primarily driven by the absence of fresh market triggers following the conclusion of corporate results season," it said.

Major index heavyweights including Fauji Fertiliser Company, Engro, Lucky Cement, Meezan Bank and Systems Limited were the main laggards, which collectively shaved 902 points off the benchmark index.

Despite the downturn, market activity remained robust, with trading volumes reaching 860 million shares and traded value standing at Rs34.8 billion, the brokerage house added.

Arif Habib Limited (AHL), in its report, stated that the index dipped to the lower end of the

160-162k support zone and was testing the maximum allowable decline in order to

maintain a bullish order flow. On the KSE-100 index, 25 shares rose while 72 fell, where Pakistan Services (+5.12%), DH Partners (+9.96%) and Millat Tractors (+2.97%) contributed the most to index gains. Fauji Fertiliser Company (-1.91%), Engro Holdings (-2.64%) and Lucky Cement (-2.8%) were the biggest index drags, it said.

AHL mentioned that the IMF board would review Pakistan's loan request in early December. Apart from that, Google in partnership with Tech Valley and the National Radio and Telecommunication Corporation will assemble 500k Chromebooks in Pakistan by 2026. "We anticipate the support to hold and the KSE-100 to rally over the coming sessions," it added.

Overall trading volumes decreased to 860.3 million shares compared with the previous tally of 899.4 million. The traded value of shares stood at Rs34.8 billion.

Shares of 481 companies were traded on the ready market, out of which 158 closed higher, 278 declined and 45 remained unchanged.

K-Electric led the volumes chart with trading in 100 million shares, losing Rs0.06 to close at Rs5.46. It was followed by Hascol Petroleum with 66.5 million shares, rising Rs0.50 to close at Rs15.86 and WorldCall Telecom with 45.6 million shares, edging down Rs0.04 to close at Rs1.77.

Foreign investors were sellers of shares worth Rs778 million, according to the National Clearing Company of Pakistan Limited (NCCPL).