Stocks lose 1,074 points amid profit-taking

KARACHI: Stocks witnessed profit-taking on Tuesday after several bullish sessions and decreased by 1,074 points, as anticipated in the overbought market. Geo-political tensions in the Middle East also affected investor sentiment.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index decreased by 1,073.74 points or 0.98 per cent to 108,896.65 points against 109,970.39 points recorded in the last session. The highest index of the day remained at 111,759.58 points while the lowest level was recorded at 107,711.40 points.

Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks closed bearish on global equities selloff on geo-political tensions in the Middle East and dismal data regarding remittances falling by 5.0 per cent month-on-month (MoM) in November.”

He said that consolidation amid concerns for government tax collections shortfall, weak global crude oil prices and slippages in IMF targets under the EFF played a catalyst role in the bearish activity.

The KSE-30 index decreased by 321.94 points or 0.94 percent to 33,808.72 points against 34,130.66 points.

Traded shares decreased by 49 million shares to 1,548.302 million shares from 1,597.868 million shares. The trading value rose to Rs68.805 billion from Rs60.251 billion. Market capital narrowed to Rs13.891 trillion against Rs14.027 trillion. Of the 469 companies active in the session, 106 closed in green, 329 in red and 34 remained unchanged.

Analyst Maaz Mulla at Topline Securities said the index experienced a volatile trading session as the KSE-100 index oscillated within a massive 4,000 point range. The much-needed profit booking took centre stage, with the index recording an intraday high of 1,789 points and an intraday low of 2,258 points before closing at 108,896 points.

“The session began on a bullish note, driven by robust buying interest in key sectors following encouraging macroeconomic developments. However, the gains were short-lived as investors opted to lock in profits, especially in heavyweight sectors, leading to a sharp intraday decline. Despite the turbulence, the market managed to close off its lows, signalling underlying investor confidence,” he said. SAZEW from the auto sector closed 5.5 per cent lower than the previous day, following a decline in month-on-month (MoM) sales of four-wheelers. Concerns surrounding the advance-to-deposit ratio (ADR) have cast a shadow over the banking sector, with BAHL, MCB, UBL, and BAFL facing the brunt of the pressure, ultimately closing in negative territory.

Major contributors to the index’s surge were MARI, LUCK, ATRL, SYS, and SEARL, which collectively added 508 points. On the flip side, UBL, BAHL, MCB, EFERT, and Engro dragged the index down, collectively losing 629 points.

The highest increase was recorded in Khyber Textile Mills Limited, which rose by Rs51.61 to Rs631.88 per share, followed by Attock Refinery Limited, which increased by Rs46.97 to Rs588.20 per share. A significant decline was noted in Unilever Pakistan Foods Limited, which fell by Rs362.95 to Rs20,330.55 per share; Hoechst Pakistan Limited followed it, which closed lower by Rs123.13 to Rs2,653.09 per share.

WorldCall Telecom remained the volume leader with 200.87 million shares which closed lower by 17 paisas to Rs1.66 per share. Cnergyico PK with 150.687 million shares followed it, which closed lower by 19 paisas to Rs6.94 per share.

Other significant turnover stocks included K-Electric Ltd, Telecard Limited, Fauji Foods Ltd, BO Punjab, Pak Elektron, Sui South Gas, Pak Refinery and Hascol Petrol. In the futures market, 306 companies recorded trading, 106 of which increased, 329 decreased, and 34 remained unchanged.