KARACHI: The positive note continued at the Pakistan Stock Exchange (PSX) on Friday as the benchmark added another 422 points to reach 38645 level.
Earlier, the stocks tried to recoup some losses in early trading and added 140 points to reach 38364 level in early trading. Market fell sharply amid concerns over political uncertainty. The benchmark KSE 100-index remained under pressure throughout the day and lost 596 points to close at 38,223 points.
Top index point decliners were HUBC (down 2.6%), DGKC (5%), MCB (1.6%), PSO (3.3%) & ENGRO (1.7%), withholding 150 points from the index while stocks including ABOT (up 3.1%), INDU (1.7%), COLG (2.4%), SHFA (3.9%) & CSAP (5%) added 32 points to the index.
On the sector front, cement, commercial banks, and E&P sector cumulatively took away 248 points from the index. On the flip side, chemical and miscellaneous sectors added a total of 10 points to the index.
Dealer at JS Global believe the decline was mainly due to the ongoing political situation in the country. Moreover, PKR weakened to a record low amidst expected pressure on the balance of payments of the country. Market volumes also dropped below 100m mark to reach 92.9m shares as compared to 117.7m shares of the previous day (-21% DoD). Average traded value also dropped by 24% DoD to end at USD 37.3m as against USD 48.9m. Stocks that contributed significantly to the volumes included TRG, KEL, PAEL, DCL and DFML, contributing a total of 32m shares, reflecting 35% share of total volumes.
The market opened lower as stocks carried the bearish momentum from the word go and all major sectors including oil, financial, cement and steel remained in the red throughout the trading session on extremely dull volumes.
Blue chips like Hub Power (-2.6%), MCB Bank (-1.6%), Pakistan State Oil (-3.3%) and Engro Corp (-1.7%) traded lower and dented the KSE-100 Index. DG Khan Cement (-5%), International Steels (-4.9%) and Pak Elektron (-5%) were among the major losers that kept sentiments dampened as they slid towards their lower limits.
“With key support around 37,500, we expect the benchmark index to consolidate and trade in a 800 to 1,000-point range in the near-term,” he added.
Major movers were Indus Motor (+1.68%), Thal Limited (+0.93%), Packages Limited (+0.07%) and Sui Northern Gas Pipelines (+0.41%) whereas major laggards were Mari Petroleum (-2.14%), National Refinery (-5%), Pak Suzuki Motor Company (-3.60%) and Attock Refinery (-4.94%), contributing -43 points to the index.
Overall, trading volumes fell to 92 million shares compared with Wednesday’s tally of 117 million.
Shares of 347 companies were traded. At the end of the day, 59 stocks closed higher, 269 declined while 19 remained unchanged. The value of shares traded during the day was Rs4.1 billion.
TRG Pakistan was the volume leader with 10.3 million shares, losing Rs1.59 to close at Rs30.22. It was followed by K-Electric with 8.3 million shares, losing Rs0.28 to close at Rs6.10 and Pak Elektron with 6.3 million shares, losing Rs2.31 to close at Rs44.00.
Foreign institutional investors were net buyers of Rs206 million during the trading session, according to data compiled by the National Clearing Company of Pakistan.