KARACHI: Pakistan stocks ended down by 131 points on Friday in choppy trading activities during the day.The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) ended at 40,707 points from previous day’s closing 40,838 points, showing a decline of 131 points.
Analysts at Arif Habib Limited said that the stocks concluded the week with a mixed session.
The Pakistan stocks opened in the green zone, although initially bulls drove the market but soon bears took the charge as investors opted to square-up their positions due to the rollover week.
Market remained choppy throughout the day as Investors kept cautious trading approach owing to political noise along with no clarity from IMF board for the release of 9th tranche of the IMF Extended Fund Facility. trading volumes remained healthy as investors opted for value hunting in high dividend yielding stocks.
Sectors contributing to the performance include Commercial Banks (-112.3 points), E&P’s (-41.5 points), Technology & Communication (-29.9 points), OMCs (-26.2 points), and Glass & Ceramics (-8.2 points).
Volumes increased from 150.2 million shares to 153.4 million shares (+2.1 per cent DoD). The average traded value decreased by 13.8 per cent to USD 19.1 million as against USD 22.1 million.
Stocks that contributed significantly to the volumes are WTL, MLCF, TPLP, OGDC, & HUBC.
Despite the bearish close, market participants at the Pakistan stocks remained selectively active in fundamentally strong stocks, particularly those offering attractive dividend yields. Analysts believe that investors are likely to stay cautious in the coming sessions unless there is a clear direction from key economic fronts, especially on the IMF program and political stability. The uncertainty surrounding fiscal reforms and foreign inflows continues to weigh on investor sentiment. However, some respite could come from improved corporate earnings in upcoming quarterly results. Technical analysts suggest that the KSE-100 index needs to hold above the 40,500 support level to prevent further downside pressure in the near term.