Investors take breather after strong run at PSX

Stocks closed below 75,000 on Wednesday, losing 250 points as investors booked profits, overriding gains made earlier in the session, dealers said.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index shed 0.33 percent to close at 74,956.67 points. The index started positively, hitting an intra-day high of 75,513.90, but bears took control in the final hours, pushing it into negative territory.

“Unable to sustain the gains made in previous session, the PSX ended day on Wednesday in red," said brokerage Capital Stake in a post-market note. "Indices traded in green for most part of the day but lost momentum sharply towards the end of the session, resulting in a negative close. On the other hand, volume swelled compared to previous session.”

The index traded in a range of 678.41 points showing an intraday high of 75,513.90 (+307.13) and a low of 74,835.49 (-371.29) points. The total volume of the KSE-100 index was 183.37 million shares.

Of the 100 index companies 34 closed up, 63 closed down, 2 were unchanged, while 1 remained untraded.Banks, fertilizer, technology & auto sector contributed negatively where MCB, ENGRO, THALL, BAHL & TRG lost 185 points. On the contrary, SYS, FFC & PGKP cumulatively added 125 points due to some buying interest observed in them.

KSE-100 index was let down by Commercial Banks (56.4pts), Cement (55.53pts), Automobile Parts & Accessories (41.56pts), Oil & Gas Marketing Companies (41.24pts), and Miscellaneous (28.85pts).

On the flip-side, the index was supported by Power Generation & Distribution (67.41pts), Technology & Communication (41.68pts), Inv. Banks/ Inv.Cos./Securities Cos. (14.35pts), Leather & Tanneries (4.02pts), and Insurance (3.45pts).

Companies that dragged the index lower were MCB (49.11pts), ENGRO (41.84pts), THALL (41.56pts), BAHL (31.45pts), and PSEL (23.62pts).

On the other hand, companies that added points to the index were SYS (76.26pts), FFC (26.06pts), PKGP (25.2pts), UBL (21.97pts), and MEBL (21.81pts).

Brokerage Topline Securities said the confounded market behavior can be ascribed to absence of any positive trigger which can assist market to keep on its off late north bound journey."Vibes from negotiations between Pakistan Government & IMF and anticipation of further austerity measures in the upcoming budget kept the investors at the bay as they opted to do some profit taking above 75k level."

The KSE-100 has gained 33,504 points or 80.82 percent during the fiscal year, whereas the ongoing calendar year has witnessed a cumulative increase of 12,506 points, equivalent to 20.02 percent.