Stocks lose 753 points on lack of triggers
KARACHI: On the eve of the formal start of negotiations with the International Monetary Fund (IMF), gloomy conditions persisted in the stock market due to uncertainty related to the outcome of talks as a result the benchmark KSE 100-share index remained under selling pressure extending the overnight losses.
Ahsan Mehanti of Arif Habib Corporation said the expected tough review by the IMF mission under the current $3bn Stand-By Arrangement from March 14-18 fuelled market nervousness as cautious investors indulged in profit-taking.
Besides securing the release of the $1.1bn last tranche under the current SBA, Finance Minister Muhammad Aurangzeb would also be discussing with the IMF a fresh longer and larger Extended Fund Facility to address the country’s balance of payments issues.
The dismal data on automobile sales falling by 41pc in July-February and uncertainty over the possibility of a cut in the interest rate also played a role in the bearish close.
Topline Securities Ltd said the session commenced on a promising note as the index rallied 241.67 points to an intraday high of 65,043 points. However, investors resorted to profit-taking in the closing hours, which swiftly evolved into a widespread selling activity across the board.
Several sectors, including exploration & production, automotive, banking, and technology, contributed negatively to the index performance, with companies such as Mari Petroleum Ltd, Pakistan Petroleum Ltd, Millat Tractors Ltd, PSO, TRG Pakistan, and Habib Bank collectively shedding 266 points.
As a result, the KSE-100 index closed at 64,048.44 points after tumbling by 753.26 points or 1.16 per cent from the preceding session.
The overall trading volume fell 21.43pc to 252.75 million shares. The traded value also dipped 14.82pc to Rs9.24bn on a day-on-day basis.
Stocks contributing significantly to the traded volume included Cnergyico PK Ltd (19.85m shares), Bank of Punjab (18.74m shares), K-Eectric (14.39m shares), P.I.A.C. (A) (11.75m shares) and Kohinoor Spinning Ltd (11.15m shares).
Companies registering the biggest decreases in their share prices in absolute terms were Allawasaya Textile (Rs108.00), Mari Petroleum Ltd (Rs74.57), Nestle Pakistan (Rs49.12), Pakistan Hotels Developers Ltd (Rs38.70) and Pakistan Tobacco Company Ltd (Rs33.59).
Shares registering the biggest increases in their share prices in absolute terms were Unilever Pakistan Foods (Rs200.00), Bata Pakistan (Rs20.00), Shahmurad Sugar Mills (Rs10.80), Bolan Castings Ltd (Rs5.20), Sitara Chemical (Rs5.00). Aggressive buying by foreign investors continued as they purchased shares worth $2.53m.
Published in Dawn, March 14th, 2024