Stocks retreat 117 points on foreign selling
KARACHI: Stocks succumbed to selling pressure on the last trading day of the week with the KSE-100 index ceding 116.68 points (0.27 per cent) and closing at 42,530.67.
Trading started on a positive note with the index in the green by 98 points. But the market soon turned volatile which saw it move between the intraday high and low by 222 points and 190 points.
The market was dragged down in the red in the first session as selling orders mounted in almost all the sectors including exploration and production, cement, steel, chemical, technology and the pharmaceutical. Automobile and fertiliser remained in the positive with most stocks showing major upsurge. Selected scrips in banking also blipped in the green in early trade.
At the start of the second session, Pakistan Petroleum came up with its financial results that were generally lower than expectations and resulted in extending the losses.
Foreign investors sold shares worth $2.94 million. Banks and individuals from local participants also booked profit ahead of the weekend. Companies, mutual funds and insurance took fresh positions in stocks available at attractive valuations.
The volume declined 41pc from the earlier day to 526.2m shares while traded value also fell 35pc to reach $105.7m. Stocks that contributed significantly included Hascol, Byco, Pakistan International Bulk Terminal, K-Electric and Pace, which formed 34pc of total turnover.
Cement and E&P sectors were badly mauled by the bears. In the former, Maple Leaf, Pioneer, Cherat and DG Khan closed in the negative while the latter saw Pakistan Petroleum and Oil and Gas Development Company as the major losers. In automobile, shares of most car assemblers rose to over 2pc early in the first session but tumbled in the second half.
Major scrips that contributed to the index upside during the day included United Bank, Engro Corp, Hub Power, Hascol and Habib Bank. Shares that dragged the benchmark down were PPL, Lucky Cement, Nestle, OGDC and Engro Fertiliser.
Published in Dawn, September 12th, 2020