Selling pressure continued to dominate trading on the Pakistan Stock Exchange on Tuesday, as the KSE-100 index extended losses from the previous session and registered a decline of 161 points.
Investors took a cautious stance ahead of the Financial Action Task Force (FATF) decision on whether to remove Pakistan from the gray list and turned to profit-taking.
Lousy current account data, which showed a deficit of $ 229 million in January 2021, helped the downtrend with the market trading in a tight range.
Trading previously started on a rally when market participants invested in exploration and production stocks, buoyed by a rebound in international crude oil prices. As a result, the index remained in an uptrend until noon.
Investor sentiment weakened later in the day when they dumped their shares, dragging the market lower.
At the close, the benchmark KSE-100 index registered a decline of 161.29 points, or 0.35%, to settle at 45,728.75 points.
Arif Habib Limited, in its report, stated that the market traded in a narrow range between -227 points and +194 points, closing the session lower at 161 points.
The exploration and production sector remained positive throughout the session due to the increase in international crude prices. However, the rise in exploration and production inventories remained limited.
Banks, cement, oil and gas trading companies continued their downward trend following the announcement of the semi-annual / annual results.
Tech stocks reversed after hitting the session high and closed in the red.
Hascol Petroleum announced an increase in its authorized share capital that hinted at a capital increase. The stock faced an earnings reserve and eventually closed below the previous day’s closing price, it said.
JS Global analyst Danish Ladhani said the earnings reserve was recorded on the Pakistani stock exchange as the KSE-100 index slipped from an intraday high of +194 points to a low of -227 points before closing the session at 45,729. , down 161 points.
WorldCall Telecom (+ 5.8%), Byco (-5%), Media Times (+ 8.2%), TRG Pakistan (-5.7%) and Dewan Cement (+ 0.7%) were the leaders in volume, contributing an accumulated 271 million shares to the aggregate volume.
Adamjee Insurance (-1.1%) from the insurance sector released its CY20 results where the company reported consolidated earnings of Rs 5.93 per share and announced a cash payout of Rs 1.25 per share.
Additionally, Byco (-5%) from the refineries sector reported consolidated earnings in 1SFY21 of Rs0.12 per share.
Long steel producers Agha Steel (+ 4.8%) and Mughal Iron and Steel Industries (+ 1.2%) closed in the green on news reports that steel rod prices could cross Rs 150,000 per tonne due to an increase in international scrap prices.
“With the FATF meeting underway, we expect the market to remain volatile and advise investors to use any downside as an opportunity to build positions in the textile, steel and refinery sectors,” he said.
Total trading volumes contracted to 718.2 million shares compared to Monday’s tally of 722.1 million. The value of the shares traded during the day was 25.3 billion rupees.
Shares of 359 companies were traded. At the end of the day, 135 stocks closed higher, 205 declined, and 19 were unchanged.
WorldCall Telecom was the volume leader with 84.3 million shares, gaining Rs0.09 to close at Rs1.64. It was followed by Byco Petroleum with 70.4 million shares, losing Rs0.55 to close at Rs10.42 and Media Times with 55.4 million shares, gaining Rs0.31 to close at Rs4.07.
Foreign institutional investors were net sellers of shares worth Rs 88 million during the trading session, according to data compiled by the Pakistan National Clearing Company.