Stocks fell on Friday as talks with IMF seemed to have hit a bump in the road with concerns over economy deepening amid political uncertainty and FATF grey list status quo, traders said.
The benchmark KSE-100 Share Index dropped 243.04 points or 0.53 percent to 45,578.36 points, with the session highest and the lowest being 46,033.26 and 45,179.96 points.
Ahsan Mehanti at Arif Habib Corp, said, stocks closed lower amid pressure on concerns over a surge in government bond yields, delay in Pakistan-IMF resolve over loan programme and FATF’s (Financial Action Task Force) decision to keep Pakistan in the grey list.
Economic uncertainty, surging trade deficit, and weakening rupee dragged the index down, Mehanti added.
KSE-30 Shares Index also lost 134.34 points or 0.75 percent to close at 17,871.80 points.
Ready market volume shrank by 38 million shares to 300.68 million from 338.31 million, while traded value dropped to Rs11.82 billion from Rs13.36 billion.
Market capital reduced to Rs7.863 trillion from Rs7.897 trillion.
Out of 346 actives in the session, 129 were emerged as gainers, 208 losers, while nine held status quo.
Brokerage Topline Securities said after a positive opening the index made an intraday high of 217 points but failed to sustain momentum owing to political fears that followed the protest by rightwing religious parties and opposition party alliance (Pakistan Democratic Movement) across Pakistan.
HBL, UBL, AICL, CHCC, and THALL, cumulatively contributed 104 points to the index, on the flip side TRG, ENGRO, PPL, PSO, and OGDC, together eroded 167 points.
Sapphire Textiles was the top gainer, up Rs74.50 to end at Rs1,195/share, followed by Rafhan Maize, up Rs60.01 to finish at Rs10,350/share.
As the worst losers of the day Nestle Pakistan fell Rs80 to Rs5,720/share. It was followed by Wyeth Pak Ltd lost Rs55.32 to close at Rs1,503.33/share.
JS Research in its market wrap said the index took a correction from an intra-day low of -641 points and managed to close at 45,578. “Going forward, the market can continue its upward journey after completing its correction soon, therefore, investors are advised to avail any dips in market as buying opportunity stands mainly in blue chips stocks,” the JS Research report said.
On results front, ENGRO profitability clocked in at Rs6.1 billion (EPS Rs10.6) in 3QCY21, down significantly by 34 percent year-on-year against Rs9.3 billion (EPS Rs16.1) in 3QCY20, taking 9MCY21 profitability to Rs23.2 billion (EPS Rs40.2) against Rs18.3 billion (EPS Rs31.8), up 26 percent year-on-year.
Khurram Schehzad, Chief Executive Officer at Alpha Beta Core, research and analytical advisory platform, in his comments on the economy said fiscal and monetary authorities should put their heads together on priority to devise an economic and investment strategy before we go deep into deficits again.
Hum Network was volume leader with 35.86 million shares, followed by Unity Foods Ltd that witnessed a trade of 22.53 million shares.
Stocks that recorded significant turnover included WorldCall Telecom, Maple Leaf, TRG Pak Ltd, Telecard LimitedXB, Byco Petroleum, Treet Corp, Bank of Punjab, and Aisha Steel Mills.
Turnover in the future contracts increased to 90.37 million shares from 72.73 million.