The share market witnessed a significant downturn on Monday as the benchmark KSE-100 index of Pakistan Stock Exchange (PSX) plunged by 1043 points.
The index closed at 30,579 points, down from the previous close of 31,622 points, marking a substantial decline.
Analysts at Arif Habib Limited reported that the share market opened on a positive note, gaining 294 points initially with 6.1 million shares traded at the opening bell. However, the positive momentum observed in the last trading session at the share market on Friday did not persist. The share market quickly lost its early gains as selling pressure mounted, eventually driving the index down by as much as 1119 points during the session before closing with a 1043-point loss.
The selling pressure was widespread, impacting nearly all sectors. Despite the overall decline, Exploration & Production (E&P) stocks managed to hold some ground, displaying decent trading volumes within a range-bound activity at the share market. However, other sectors were not as resilient.
The cement sector led the trading volumes with 71.6 million shares, followed by Oil & Gas Marketing Companies (O&GMCs) with 25.4 million shares, and the power sector with 21.7 million shares. Among individual scrips, Maple Leaf Cement Factory (MLCF) topped the volumes with 23 million shares, followed by Hascol Petroleum Limited (HASCOL) with 20.1 million shares, and K-Electric Limited (KEL) with 17 million shares.
Key sectors contributing to the negative performance of the index included banks (-297 points), fertilizers (-143 points), cement (-121 points), power (-93 points), and O&GMCs (-62 points). The overall trading volumes declined from 251.8 million shares to 233.2 million shares, a 7 percent decrease day-over-day. Additionally, the average traded value fell by 6 percent to $52.2 million from $55.5 million.
Stocks significantly contributing to the trading volumes included MLCF, HASCOL, KEL, Unity Foods Limited (UNITY), and Pioneer Cement Limited (PIOC), which together accounted for 35 percent of the total volumes.
Despite the overall negative trend, a few stocks contributed positively to the index. Oil and Gas Development Company (OGDC) added 33 points, Pakistan Tobacco Company (PAKT) added 22 points, Bank AL Habib Limited (BAHL) contributed 10 points, Jubilee Life Insurance Company Limited (JLICL) added 6 points, and Standard Chartered Bank Pakistan Limited (SCBPL) added 4 points.
Conversely, stocks that significantly dragged the index down included Habib Bank Limited (HBL) which lost 80 points, MCB Bank Limited (MCB) which shed 71 points, Hub Power Company (HUBC) which dropped 62 points, Engro Corporation (ENGRO) which lost 57 points, and United Bank Limited (UBL) which declined by 56 points.
The steep decline of the share market highlights the volatility and sensitivity of the market, particularly in the face of widespread selling pressure across multiple sectors.
