Stock market gains 55 points amid selling pressure

Stock market gains 55 points amid selling pressure

KARACHI: The stock market posted a gain of 55 points on Tuesday, recovering from a significant fall earlier in the day. The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 39,127 points, up from 39,072 points, marking an increase of 55 points.

Analysts at Arif Habib Limited noted that the market opened on a positive note despite several consecutive negative closings in the past sessions. Initially, a wave of buying contributed 277 points to the index. However, this was followed by selling pressure that eroded these early gains, resulting in a total loss of 504 points at one stage. Throughout the session, the index fluctuated between positive and negative territories.

Despite a rebound of approximately 5 percent in international oil prices, local Exploration & Production (E&P) stocks did not reflect this positive trend during the session. This divergence suggested a decoupling of local market dynamics from international oil price movements.

The cement sector showed strong buying activity towards the end of the session, helping to push the index back into positive territory with an addition of 55 points. Among individual stocks, HASCOL topped the volume chart with 78 million shares traded, followed by UNITY with 36.8 million shares and TRG with 29.4 million shares.

Various sectors contributed to the market’s performance, with Cement adding 15 points, Insurance 11 points, Oil & Gas Marketing Companies (O&GMCs) 11 points, and Fertilizer 8 points. On the downside, E&P dragged the index down by 19 points and Banks by 7 points. Overall, market volumes slightly declined by 1 percent, from 409.9 million shares to 406.0 million shares day-on-day (DoD). The average traded value also saw a minor decline of 2 percent, reaching US$ 75.3 million compared to US$ 76.7 million previously.

Significant contributors to the trading volumes included HASCOL, UNITY, TRG, Pakistan Refinery Limited (PRL), and Fauji Foods Limited (FFL), accounting for 43 percent of the total market volumes.

Stocks that had a positive impact on the index included Bank Alfalah Limited (BAFL) adding 12 points, The Searle Company Limited (SEARL) also with 12 points, Engro Corporation (ENGRO) with 9 points, National Bank of Pakistan (NBP) with 8 points, and Engro Polymer & Chemicals Limited (EPCL) with 7 points. Conversely, stocks contributing negatively included Bank AL Habib Limited (BAHL) with a reduction of 12 points, Oil & Gas Development Company (OGDC) decreasing by 11 points, TRG Pakistan Limited (TRG) with a 7-point drop, Dawood Hercules Corporation Limited (DAWH) down by 6 points, and Habib Bank Limited (HBL) also down by 6 points.

The session highlighted the market’s volatility and the sector-specific movements that influenced overall performance, reflecting the complex interplay of local and international factors impacting investor sentiment.