Stocks plunge by 601 points amid profit booking

Stocks plunge by 601 points amid profit booking

KARACHI: The stock market on Monday plunged by 601 points owing to financial year ending lead to profit booking. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 47,002 points as against last Friday’s close of 47,603 points, showing a decline of 601 points.

Analysts at Arif Habib Limited said that the market dipped 701 points during the session today and closed the session -601 points.

Financial year end closing for the institutional investors (Banks and Mutual Funds) prompted profit booking, especially in the aftermath of MSCI downgrade from Emerging Market to Frontier Market which can possibly result in selling from foreign corporates.

Selling pressure was witnessed across the board with emphasis on Cement, Banks, E&P sectors.

Among scrips, WTL topped the volumes with 97.7 million shares, followed by BYCO (52.4 million) and JSCLR1 (50.3 million).

Sectors contributing to the performance include Banks (-191 points), Cement (-106 points), O&GMCs (-53 points), E&P (-52 points) and Textile (-45 points).

Volumes declined from 761.4 million shares to 655.1 million shares (-14 per cent DoD). Average traded value also declined by 13 per cent to reach US$ 119.2 million as against US$ 137.5 million.

Stocks that contributed significantly to the volumes include WTL, BYCO, JSCLR1, KEL and TREET, which formed 39 per cent of total volumes.

Stocks that contributed positively to the index include TRG (+22 points), ABOT (+10 points), THALL (+8 points), ABL (+8 points) and PKGS (+8 points). Stocks that contributed negatively include HBL (-69 points), LUCK (-51 points), UBL (-43 points), HUBC (-33 points) and MCB (-24 points).

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