Gains vanish as PSX succumbs to late selling

KSE-100 index drops 244 points amid volatility, range-bound trading

KARACHI:

Trading at the Pakistan Stock Exchange (PSX) remained range bound on Wednesday as investors were wary of taking fresh positions amid persistent volatility.

The benchmark KSE-100 index closed at 170,830.22, registering a decline of 243.51 points, or 0.14%. The index oscillated between the intra-day high of 171,587 and low of 170,641, reflecting uncertainty about the near-term direction.

Earlier in the day, investor sentiment appeared constructive, with the market gaining more than 300 points in opening hours on the back of selective buying. Investors took interest in heavyweight sectors, particularly commercial banks, fertiliser, oil and gas. However, profit-taking at higher levels wiped off most of the gains.

On the corporate front, attention was focused on developments following the completion of bidding process for Pakistan International Airlines (PIA) on Tuesday. As government circles hailed PIA's bidding as a historic milestone, Fauji Fertiliser informed the PSX on Wednesday that its board had approved the company's participation in the winning consortium, led by Arif Habib Corp.

KTrade Securities observed that the PSX had another range-bound session amid relatively low volumes. The KSE-100 index declined 244 points to close at 170,830.

Cement stocks came under pressure, while fertiliser and oil & gas sectors made a positive contribution to the index. Selling pressure was noted in Lucky Cement, Engro Holdings, Kohat Cement and Systems Limited, whereas selective buying was seen in PTCL, Fauji Fertiliser, OGDC, Pakistan Petroleum and The Bank of Punjab, it said.

KTrade believes the broader market outlook will remain constructive, supported by improving macroeconomic conditions following the State Bank's policy rate cut.

In its review, Topline Securities wrote that the KSE-100 index closed at 170,830, down by 244 points as persistent volatility and cautious investor sentiment weighed on the market. Intra-day trading saw the index fluctuate between the high of 171,587 and low of 170,641.

Meanwhile, PIA Holding Company reached near its lower cap after investors realised that the listed PIAA would not retain any stake in PIA in the event of its privatisation as in three months the winning consortium might consider acquiring an additional 25% stake offered by the government as a call option, it mentioned.

On the upside, PTCL, Fauji Fertiliser, OGDC, Pakistan Petroleum and The Bank of Punjab collectively contributed 375 points to the index. However, the gains were more than offset by declines in Lucky Cement, Engro Holdings and Kohat Cement, which shaved off 430 points, Topline added.

A dull activity was observed at the PSX owing to the rollover week as investors preferred to adopt a cautious stance, commented JS Global analyst Ali Nawaz.

He said that the benchmark index closed with a loss of 244 points at 170,830, though it touched the intra-day high and low of 171,587 (+513 points) and 170,641 (-433 points), respectively. He advised investors to avail of any dips as an opportunity to take positions primarily in oil & gas and cement stocks.

Overall trading volumes increased to 811.6 million shares against Tuesday's tally of 650.1 million. The value of traded shares stood at Rs29.8 billion.

Shares of 481 companies were traded. Of these, 171 stocks closed higher, 264 declined and 46 remained unchanged.

Pakistan International Bulk Terminal was the volume leader with trading in 62.1 million shares, rising Rs0.61 to close at Rs18.25. It was followed by The Bank of Punjab with 61.3 million shares, gaining Rs1.02 to close at Rs38.90 and PIA Holding Co with 54.4 million shares, losing Rs3.46 to close at Rs34.16.

Foreign investors bought shares worth Rs136.3 million, the National Clearing Company reported.