The KSE-100 index on Wednesday lost 65.11 points to close at 11,868.17 points due to profit taking opted by both local and foreign investors. The market opened on a strong positive note and the index hit 11,999.29 points intra-day high. However, the momentum could not continue as the investors opted for profit taking on available margins.
The investors' interest continued in some banking, cement and fertiliser sector stocks that supported the index to minimise its intra-day losses. Trading remained low and the volume at ready counter declined to 82.644 million shares as compared to 105.657 million shares traded on Tuesday. Market capitalisation declined by Rs 16 billion to Rs 3.132 trillion.
Of 380 active scrips, 167 closed in negative and 122 in positive, while the values of 91 stocks remained unchanged. NBP was the volume leader with 8.741 million shares and gained Rs 1.77 to close at Rs 48.88. BoP inched up by Re 0.02 to close at Rs 6.53 with 3.051 million shares, while Bank Al Falah lost Re 0.09 to close at Rs 11.55 with 2.408 million shares.
Fauji Fertiliser Bin Qasim, Fatima Fertiliser Co and Engro Corp declined by Rs 1.07, Re 0.29 and Rs 3.68 to close at Rs 60.70, Rs 19.69 and Rs 138.74 with 8.624 million shares, 6.448 million shares and 2.570 million shares respectively, while Fauji Fertiliser Co (FFC) increased by Re 0.93 to close at Rs 171.55 with 4.484 million shares.
Fresh buying was seen in the cement sector, as Lucky Cement, DG Khan Cement and Fauji Cement surged by Re 0.21, Re 0.41 and Re 0.19 to close at Rs 75.13, Rs 21.14 and Rs 4.28 with 4.353 million shares, 3.711 million shares and 3.288 million shares respectively.
Unilever Pak and Bhanero Textile were highest gainers increasing by Rs 24.00 and Rs 6.50 to close at Rs 5636.40 and Rs 256.53 respectively, while Nestle Pakistan and Wyeth Pak were worst losers declining by Rs 102.68 and Rs 24.20 to close at Rs 3532.06 and Rs 800.01 respectively. Hasnain Asghar Ali at Aziz Fidahusein Co said that steam fizzled out from the over-heated run-up that was undoubtedly initiated by the fertiliser sector, with most triggers in upcoming period already priced in, 12000 psychological level became an excuse for an across the board profit taking. However, despite the sell-off, certain stocks from fertiliser and banking sectors did manage to invite accumulation on dips and managed to stay in green zone. But, some high priced stocks and the stocks facing various infrastructural issues along with debt burden found it tough to resist the incoming corporate and trading float.
"Although the much talked about improvement in trade ties with India, the impact of likely decline in local interest rates, and resolution of circular debt may continue to offer short-term triggers, across the board activity and follow-up support call for major triggers to keep the nod of caution intact", he added.