The capital market ended the week in the red zone on Friday as investors weighed the bleak economic outlook opting to take profits and institutional buyers focused on value stocks, traders said.
The benchmark Pakistan Stock Exchange (PSX) KSE 100 shares fell 0.34% or 148.52 points to close at 44,118.39 points from 44,266.91 points recorded in the last session. The index’s intraday high was 44,468.89 points, while the day’s low was recorded at 44,041.62 points.
Analyst Ahsan Mehanti of Arif Habib Corp said: “Stocks closed lower on investor concerns over the bleak economic outlook.”
Political noise, reports of an increase in repayable external debt, a current account deficit of $7.1 billion for July-November 21 and rupee instability ahead of the review of the International Monetary Fund (IMF) Board on Jan. 12 played a catalytic role in the bearish close, he said. .
The KSE-30 index also fell by 0.42% or 73.37 points to end at 17,353.47 points against 17,426.84 points during the last session.
Shares traded fell 17 million to 223.37 million shares from 240.42 million shares in the previous session. The market value decreased to 7.33 billion rupees from 8.02 billion rupees. Market capital shrank to Rs7.559 trillion from Rs7.582 trillion. Of 353 companies active in the session, 136 posted gains, 194 losses, while 23 remained unchanged.
Muhammad Mubashir, an analyst at JS Research, said another lackluster session was seen. “The market opened on a positive note and gained 200 points, but ultimately, due to a lack of positive triggers, investors opted to take profits, leading the KSE-100 to close at 44,118, down 149 points,” he said. “Going forward, we recommend investors adopt a buy-down strategy in the banking, exploration and production, and cement sectors. »
The largest increase was recorded in shares of Nestle Pakistan, which rose by Rs85 to close at Rs5,670/share, followed by Sanofi-Aventis which rose by Rs52.94 to close at Rs758.82/share.
A significant decline was noted in shares of Colgate Palmolive, which fell Rs 186.01 to close at Rs 2,313.99/share, followed by Sapphire Textiles, which lost Rs 65.50 to close at Rs 820/share. action.
A report from Arif Habib Ltd stated that the battle between bulls and bears was won by the bears in the last hour of trading.
“The market opened with positive momentum as SBP conducted another OMO for 63 days. The bullish outlook faded on investor concerns over higher inflation and falling total reserves of liquid foreign exchange held by the SBP, mainly due to the repayment of external debt,” the report said.
Activity continued to stagnate as the market saw heavy volumes of Level 3 stocks. On the other hand, in the second session, institutional buyers started looking for value stocks due to multiple attractants.
Sectors contributing to performance include technology and communication (-60 points), chemicals (-36 points), cement (-25 points), oil and gas exploration companies (-17 points) and textiles (-9 points).
Unity Foods Ltd remained the volume leader with 33.50 million shares with an increase of 64 paisas to close at Rs1.17/share. It was followed by Hum Network with 24.16 million shares which closed down 22 paisas to end at Rs6.66/share.
Stocks that saw strong turnover included TRG Pak Ltd, TPL Properties, Unity Foods Ltd, Telecard Limited, Treet Corp, WorldCall Telecom, Ghani Glo Hol and K-Electric Ltd.
Stock turnover in futures fell from 77.61 million shares to 85.90 million shares.