The stock market turns bearish and loses 636 points

KARACHI:

The bears made a comeback on the Pakistan stock exchange on Thursday and lowered the KSE-100 index by 636 points against a backdrop of stable T-bill yields at the latest auction.

In Wednesday’s auction, cutoff yields remained flat across all the tenors, shaking investor sentiment as the market expected lower.

In addition, the 100 basis point hike in the benchmark interest rate by the State Bank of Pakistan played into the minds of investors and they resorted to accounting profits.

After opening with minor ups and downs, the KSE-100 index plunged as market participants shed their holdings and fell below 44,000 points by noon. The decline accelerated in the last hour and accelerated the losses.

At the close, the benchmark KSE-100 fell 635.66 points, or 1.43%, to stand at 43,731.2.

A report from Arif Habib Limited said bears reigned supreme over bulls on Thursday as disappointment occurred at the market treasury bill auction where cutoff yields remained stable for all tenors .

“The market opened on a dark note as investors opted for profit accounting but were unable to sell in the green zone,” he said. “The oil and gas marketing company sector remained under pressure as the price of oil fell 3.4% to Rs 140.82 per liter, resulting in a loss of inventory for the oil and gas marketing companies. gas.”

The pharmaceutical sector remained in the red zone as a proposal on the applicability maps of the sales tax on the importation of active pharmaceutical ingredients and the local supply of drugs.

The main board’s activity has remained lackluster, he said.

“On the other hand, activity continued to remain sideways as the market saw significant volumes in third tier stocks,” the report said.

JS Global analyst Muhammad Mubashir said the stock market opened on a positive note, but all intra-day gains were ultimately wiped out as investors opted to post profits.

The KSE-100 closed at 43,731 points, dropping 636 points overnight.

The volume traded was 312 million shares, WorldCall Telecom (0.5%), Telecard Limited (6.6%), Byco Petroleum (-4.6%), TRG Pakistan (4.0%) and Unity Foods (5.6%) being the main contributors.

“Going forward, we recommend that investors adopt a downward buying strategy in the banking, exploration and production and cement sectors,” the analyst said.

Overall trading volume fell to 312.1 million shares, from 398.1 million on Wednesday. The value of the shares traded during the day was 10.1 billion rupees.

The shares of 345 companies were traded. At the end of the day, 86 stocks closed higher, 248 were lower and 11 were left unchanged.

WorldCall Telecom was the volume leader with 49.2 million shares, gaining Rs 0.01 to close at Rs 2.21. It was followed by Telecard Limited with 31 million shares, gaining Rs0.97 to close at Rs15.75 and Byco Petroleum with 19 million shares, losing Rs0.31 to close at Rs6.44.

Foreign institutional investors were net sellers of shares worth Rs 351 million during the trading session, according to data compiled by the National Clearing Company of Pakistan.

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