Shares slid on Monday with investors jittery ahead of a possible government decision on withdraw subsidies worth billion of rupees to meet IMF conditions for the sixth review of ongoing $6 billion loan programme.
The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index closed down 204.95 points or 0.46 percent to 43,913.44 points. The highest index of the day remained at 44,171.96 points while the lowest level of the day was recorded at 43,846.01 points.
KSE-30 index also fell 120.99 points or 0.70 percent to close at 17,232.48 points. Traded shares dropped by 109 million shares to 114.66 million shares from 223.37 million shares. The trading value decreased to Rs4.41 billion from Rs7.33 billion. Market capital narrowed to Rs7.533 trillion from Rs7.559 trillion. Out of 342 companies active in the session, 116 posted gains, 196 losses while 30 remained unchanged.
Analyst Ahsan Mehanti at Arif Habib Corp said stocks closed bearish on renewed concerns for covid pandemic in global equities and slump in global crude oil prices. “Economic uncertainty, surging trade /current account deficit and uncertainty over outcome of IMF board review on January 12 played catalytic role in bearish close.”
Analyst Ali Najib at Topline Securities said equities started the week on a lackluster note where market remained in the band of 320 points during trading hours. “The investors opted to remain sideline ahead of tomorrow’s parliament session where finance act and SBP (State Bank of Pakistan) autonomy bills to be introduced for the approval,” Najib said.
Technology, oil and power sector’s stocks witnessed profit taking where TRG, Mari and Hubco cumulatively lost 127 points. The highest increase was recorded in shares of Colgate Palm, which rose by Rs141.01 to Rs2,455/ share, followed by Sapphire Tex, that increased by Rs61.50 to Rs881.50/share.
A major decline was noted in shares of Nestle Pakistan, which fell by Rs270 to Rs5,400/share, followed by Mari Petroleum that decreased by Rs56.46 to Rs1,603.53/share.
Analyst Muhammad Mubashir at JS Research said profit-taking continued across the board over rising concerns regarding resumption of the IMF program and announcement of the ‘mini-budget’.
“Going forward, we expect this range-bound activity to continue and recommend investors to avail any downward movement as an opportunity to buy in cement and textile sectors,” he said.
A report of brokerage Arif Habib Ltd. said that the market remained choppy due to the upcoming mini-budget. “Profit-taking was witnessed in the last trading hour while market battled between the bulls and bears throughout the day,” it added.
Main board volumes remained on the dull note due to lack of any trigger whereas activity continued to remain side-ways as market witnessed hefty volumes in the third tier stocks.
Cnergyico PK remained the volume leader with 10.87 million shares with an increase of 2 paisas to Rs6.32/share. It was followed by TRG Pak Ltd with 9.50 million shares that closed down by Rs5.43 to Rs112.97/share.
Stocks that recorded significant turnover included Unity Foods Ltd, Telecard Limited, Hum Network, WorldCall Telecom, Ghani Glo Hol, Next Capital and G3 Technologies. Shares’ turnover in the future contracts increased to 168.04 million shares from 85.90 million shares.