PSX erodes by 672 points over political uncertainty
Benchmark index decreases 2.04% to settle at 32,309.54
The stock market eroded by 672 points on Thursday following significant selling pressure during the day. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 32,310 points as against 32,982 points, showing a decline of 672 points.
After posting gains in the past two trading sessions, bears returned to the stock market once again and pushed it down by 672 points on Thursday because of worries about expected hike in power tariff. The arrest of former prime minister Shahid Khaqan Abbasi in liquefied natural gas (LNG) import case during the day also contributed to the decline.
After a brief open in the positive zone, the KSE-100 index fell victim to selling pressure as investors offloaded stocks due to economic and political uncertainty. The market fell steadily till midday, however, following the arrest of Abbasi, the bourse dived and extended losses.
Uncertainty at the bourse caused all index-heavy sectors to close with a loss.
The market stayed positive for a brief while earlier today and went +32 points, but after that selling pressure ensued causing a slide of 758 points and ending the session at -672 points. The index breached recent intra-day low of 32,350 points today and closed at a low of 32,310 points.
Selling was observed across the board, and initially started with significant volumes in HBL. Banking sector led the volumes table with 15.7 million shares followed by Technology (11 million) and Cement (10 million).
Overall, trading volumes decreased to 87.4 million shares compared with Wednesday’s tally of 111.6 million. The value of shares traded during the day was Rs3.76 billion. Shares of 320 companies were traded. At the end of the day, 29 stocks closed higher, 275 declined and 16 remained unchanged. TRG Pakistan was the volume leader with 8.6 million shares, losing Rs0.97 to close at Rs12.67.
It was followed by K-Electric with 7.3 million shares, losing Rs0.17 to close at Rs3.54 and HBL with 4.6 million shares, losing Rs3.27 to close at Rs118.34. Foreign institutional investors were net buyers of Rs424.14 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan. At the end of trading, the benchmark KSE 100-share Index recorded a decrease of 672.45 points, or 2.04%, to settle at 32,309.54.
Scrip wise activity showed TRG ranking top with 8.5 million shares, followed by KEL (7.3 million) and HBL (4.6 million). Major declines were observed in OMCs, which saw significant declines in price, trading at and / or close to lower circuits. Sectors contributing to the performance include Banks (-115 points), E&P (-101 points), Fertilizer (-100 points), O&GMCs (-58 points), Cement (-46 points).
Volumes declined further from 112 million shares to 86 million shares (-22 percent DoD). Average traded value however, increased by 0.9 percent DoD to reach US 23.4 million as against US$ 23.2 million. Stocks that contributed significantly to the volumes include TRG, KEL, HBL, LOTCHEM and MLCF, which formed 33 percent of total volumes.
Stocks that contributed positively include MARI (+1 points), POL (+0 points), SHFA (+0 points), HGFA (+0 points) and ATLH (+0 points). Stocks that contributed negatively include ENGRO (-71 points), PPL (-64 points), HBL (-52 points), OGDC (-38 points) and HUBC (-24 points).