KARACHI: Pakistan Stock Exchange on Monday witnessed bloodbath session and nosedived in deep red zone with heavy losses due to across-the-board panic selling on investor concern over prevailing uncertainty on political front post-general elections. The market witnessed heavy losses during the two post election trading sessions.

The benchmark KSE-100 Index plunged by 1,878.43 points or 2.98 percent and closed at 61,065.32 points. During the session, the index hit 60,647.68 points intra-day low level, down 2,296.07 points however slightly recovered due to buying in some stocks in last hours.

The daily trading volumes on ready counter increased to 349.975 million shares as compared to 258.073 million shares traded on last trading session. The daily traded value on the ready counter stood at Rs 12.745 billion against previous session’s Rs 12.529 billion.

BRIndex100 decreased by 220.2 points or 3.42 percent to close at 6,225.52 points with total daily turnover of 313.340 million shares.

BRIndex30 declined by 1,144.21 points or 5.03 percent to close at 21,601.74 points with total daily trading volumes of 250.621 million shares.

Foreign investors however remained net buyers of shares worth $2.897 million. Total market capitalization declined by Rs 264 billion to stand at Rs 8.934 trillion. Out of total 354 active scrips, 300 closed in negative and only 35 in positive while the value of 19 stocks remained unchanged.

K-Electric was the volume leader with 50.348 million shares however lost Rs 0.44 to close at Rs 4.21 followed by WorldCall Telecom that inched down by Rs 0.07 to close at Rs 1.21 with 34.623 million shares. OGDC declined by Rs 10.88 to close at Rs 134.20 with 14.939 million shares.

Pakistan Hotels Developers Limited and Ibrahim Fibres Limited were the top gainers increasing by Rs 28.47 and Rs 10.00 respectively to close at Rs 455.68 and Rs 410.00 while Mari Petroleum Company and Hoechst Pakistan Limited were the top losers declining by Rs 127.10 and Rs 80.00 respectively to close at Rs 2,147.01 and Rs 1,320.00.

Senior analyst Khurram Schehzad said the Pakistan stocks break the historical trend of rallying post elections and posted losses during the first two post general election trading sessions.

He said the benchmark KSE-100 Index has continued its downward trajectory the second day post elections, largely due to uncertainty over the formation of the new government (a hung parliament) that could give some direction, clarity and outlook on handling pressing economic challenges facing the country ahead.

In this regard, unlike the past trends, KSE-100 went down in the two consecutive sessions after elections, where values at the PSX eroded sharply.

Each session has posted loss in market capitalization of Rs 214 billion ($767 million), with cumulative loss in two sessions at Rs 427 billion ($1.53 billion).

Historically, PSX had showed jubilance post elections where market used to go up 2 to 3 percent in the first two days post elections (2008, 2013, 2018 elections), while this time around, market has lost 4.7 percent post elections.

BR Automobile Assembler Index lost 250.92 points or 1.77 percent to close at 13,899.74 points with total turnover of 5.761 million shares.

BR Cement Index declined by 211.08 points or 3.27 percent to close at 6,237.68 points with 15.307 million shares.

BR Commercial Banks Index decreased by 252.95 points or 1.61 percent to close at 15,439.79 points with 30.349 million shares.

BR Power Generation and Distribution Index eroded 413.49 points or 2.96 percent to close at 13,565.25 points with 59.206 million shares.

BR Oil and Gas Index plunged by 373.43 points or 5.99 percent to close at 5,858.74 points with 51.674 million shares.

BR Tech. & Comm. Index fell by 117.38 points or 3.29 percent to close at 3,453.41 points with 58.858 million shares.

“Continuing last week’s momentum, Pakistan equities commenced the business on a negative note, remained bearish throughout the session and ultimately KSE-100 index called the day at 61,065 levels (lost 1,878 points; down 2.98 percent),” an analyst at Topline Securities said.

The aforesaid selling spree can be attributed to further delay in Circular Debt Management Plan where the IMF nod is awaited and may likely receive in this week as informed by Petroleum Division. In addition, uncertainty over political front with regards to formation of new government grabbed the market sentiments.

However, at the intraday low level of 60,648, brave value hunters opted to do some cherry picking which helped the benchmark KSE-100 index to gain some earlier lost ground.

Resultantly, E&P, Power and Cement sectors contributed negatively to the index as OGDC, PPL, MARI, HUBC and LUCK lost 640 points, cumulatively.

Copyright Business Recorder, 2024

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