KARACHI: Pakistan stocks observed a bloodbath session where banking, technology, and E&P sectors cumulatively eroded 273 points from the index, dealers said on Tuesday.
An analyst at Pearl Securities said massive profit-taking was triggered by the already delayed International Monetary Fund (IMF) programme, the rupee depreciation and uncontrolled inflation, which continuously impacted the country’s economic position.
“Further, expectations of higher interest rate in the upcoming monetary policy statement announcement kept hurting the interest of the investors throughout the session.”
The Pakistan Stock Exchange KSE-100 shares Index shed 1.52 per cent, or 715.13 points, to close at 46,399.91 points. The KSE-30 shares index shed 1.51 per cent, or 274.88 points, to close at 17,983.41 points.
As many as 359 scrips were active, of which 48 advanced, 296 declined and 15 remained unchanged. The ready market volumes stood at 434.69 million shares, compared with the turnover of 364.89 million shares in the last trading session.
“The index went towards the red zone since the start of the trading session on the news flow on uncertainty on the ongoing IMF discussions, increase in gas pricing for industrial sector, verbal rift from opposition in the local politics and inflationary concern,” Muhammad Waqar at JS Global Capital said.
Ahsan Mehanti at Arif Habib Corporation said that the stocks closed sharply lower post-earnings season profit-taking on the concerns over slump in the rupee parity and reports of likely surge in taxes and removal of subsidies on resumption of the IMF programme.
“Delays in the release of the IMF tranche, amid the ongoing IMF review, and foreign outflows played a catalytic role in the bearish close.”
A cautious approach would be recommended, as the market is likely to closely follow the upcoming monetary policy statement announcement, weekly inflation reading, development on the IMF programme and the MSCI rebalancing in the remainder of this month.
The companies, which reflected the highest gains included Gatron Industries, up Rs38 to close at Rs558/share; and Atlas Honda, up Rs30.82 to close at Rs441.82/share.
The companies that reflected the most losses included Nestle Pakistan, down Rs125 to close at Rs5,725/share; and Bata Pakistan, down Rs65 to close at Rs1,825/share.
The highest volumes were witnessed in Telecard Limited with a turnover of 33.5 million shares. The scrip shed two paisas to close at Rs19/share; followed by Fauji Foods (Rights) with a turnover of 28.81 million shares. It shed Re1 to close at Rs3.28/share. First National Equities remained the third with a turnover of 25.35 million shares. It gained Re1 to finish at Rs11.04.