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Tuesday March 19, 2024

Stocks dip on profit-taking in large caps after recent rally

By Our Correspondent
April 09, 2020

Stocks dipped on Wednesday as investors took profits, especially in large caps, and awaited more clarity on a government decision on lockdown to combat virus spread, dealers said.

Dealers said market remained largely under pressure during the day on selling by foreign investors. Investors are worried about the lock down as it has an impact on the company’s performance,” said Samiullah Tariq, director research at Arif Habib. “And with uncertainty when to end the lock down further dampened the mood.”

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index lost 0.83 percent or 260.28 points to close at 30,971.27 points level. KSE-30 shares index followed suit with a low of 1.07 percent or 147.88 points to end at 13,717.92 points level.

Of 333 active scrips, 115 up, 193 retreated, and 25 remained unchanged. The ready market volumes stood at 181.000 million shares, as compared with the turnover of 172.769 million shares in the previous session.

Traded volume improved slightly by five percent on day-to-day basis to 181 million shares, whereas traded value declined by 13 percent on day-to-day to Rs5.9 billion.

Pressure in international markets where yesterday`s gain were wiped out to some extent and a decline in crude oil prices on uncertainty regarding a output cut deal between OPEC plus member countries weakened energy stocks. Furthermore, continuous weakening of rupee against the dollar also dragged the index into minus territory.

Analyst Ahsan Mehanti from Arif Habib Corporations said stocks closed lower amid pressure in oil scrips and industrials amid falling global crude oil and slump in exports pressuring rupee parity.

“Investor concerns for global equity selloff, foreign outflows and ongoing rupee instability played a catalytic role in bearish close at PSX,” Mehanti added. Faizan Munshey, head of foreign institutional sales at Next Capital said stocks closed on a negative note in line with the global trend as world stocks showed erratic movement.

“Indecisive policy about the curtailment of oil output kept the oil and gas exploration stocks in check, Munshey said. “Moreover, in patches profit taking activities staged in several sectors.” Sateesh Balani, director research at Ismail Iqbal Securities said equities remained sideways throughout the session with slight recovery in trading volumes.

The three-months to 12-months T-bill yields came down by 4-23 bps in Wednesday’s secondary market while other investors bid at lower rates in auction of bonds. “Index heavyweight stocks within banks, E&Ps and cements dragged the index, cumulatively shedding 196 points,” Balani said.

The top gainers were Bata Pakistan, up Rs45.00 close at Rs1,535.00/share, and Indus Dyeing Rs36.05 to finish at Rs516.78/share.

Rafhan Maize down Rs310.81 to close at Rs6,389.19/share, and Pakistan Tobacco Rs131.17 to close at Rs1,617.82/share, were the main losers.

Unity Foods Limited recorded the highest volumes with a turnover of 28.766 million shares. Whereas the scrip gained Rs0.7 end at Rs10.63/share. The lowest volumes were witnessed in BOP recording a turnover of 4.313 million shares, whereas the scrip gained Rs0.04 to end at Rs8.16/share.