Stocks end down by 86 points on selling pressure

Stocks end down by 86 points on selling pressure

KARACHI: The Pakistan stocks experienced a modest decline on Wednesday, closing down by 86 points amid a day characterized by range-bound trading activity.

The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) ended the day at 47,900 points, compared to the previous close of 47,987 points, marking a decrease of 86 points.

Analysts at Arif Habib Limited noted that the Pakistan stocks witnessed another range-bound session, with the index fluctuating between a low of -114 points and a high of +148 points, before finally settling at -86 points.

The trading session at Pakistan stocks was marked by selling pressure across most sectors, with the exception of the Exploration & Production (E&P) and Refinery sectors, which managed to maintain a positive momentum throughout the day.

However, even the E&P sector faced some selling pressure in the closing hour, which brought prices at Pakistan stocks below the Last Day Closing Price (LDCP). The Oil and Gas Development Company (OGDC) experienced high trading volumes in anticipation of crucial decisions expected to be made in an upcoming emergency board meeting.

Among individual stocks, SILK topped the volume chart with 51.8 million shares traded, followed by WorldCall Telecom (WTL) with 41.5 million shares, and TPL Corp with 33.9 million shares at Pakistan stocks. These stocks were among the most actively traded, contributing significantly to the overall market volumes.

Sector-wise performance indicated that Banks, Cement, Vanaspati, and Technology sectors were among the major laggards, contributing -37 points, -34 points, -22 points, and -21 points to the index respectively. On the other hand, the Fertilizer sector contributed positively with a gain of 25 points at Pakistan stocks.

Volumes at Pakistan stocks saw a slight increase, rising from 610.7 million shares to 619.1 million shares, representing a 1% increase on a day-over-day (DoD) basis. The average traded value also saw a notable rise, increasing by 20% to reach USD 117.6 million, up from the previous USD 97.9 million.

Significant contributions to the trading volumes came from SILK, WTL, TPL, Byco Petroleum (BYCO), and Bank of Punjab (BOP), which together accounted for 31% of the total market volumes.

Stocks that made positive contributions to the index included Engro Fertilizers (EFERT) with +14 points, FrieslandCampina Engro Pakistan (FCEPL) with +11 points, OGDC with +10 points, Millat Tractors (MTL) with +8 points, and National Refinery Limited (NRL) with +7 points. Conversely, stocks that negatively impacted the index were Unity Foods (UNITY) and Lucky Cement (LUCK) each with -21 points, TRG Pakistan (TRG) with -16 points, Habib Bank Limited (HBL) with -13 points, and Pakistan State Oil (PSO) with -11 points.

The overall market sentiment remained cautious, reflecting the ongoing uncertainties and the selective buying witnessed in specific sectors. The mixed performance highlights the cautious approach investors are taking amidst fluctuating market conditions and sector-specific dynamics.