Stocks fall 289 points in oversold market

Updated October 15, 2019

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Brokers were the major sellers of equity worth $2.45 million while individuals continued to take fresh positions of $1.22m. — AFP/File
Brokers were the major sellers of equity worth $2.45 million while individuals continued to take fresh positions of $1.22m. — AFP/File

KARACHI: Profit-taking was witnessed at the stock market on Monday which several participants thought was oversold after two weeks of feverish bull run. The KSE-100 index settled down by 289 points (0.84 per cent) at 34,476.

Brokers were the major sellers of equity worth $2.45 million while individuals continued to take fresh positions of $1.22m.

Traders said that the index moved in a narrow band for most part of the day but started taking shape (negative direction) by the end.

During the session, the market see-sawed between intraday high of 222 points and low of 351 points. Although analysts put forth several reasons for the market retreat, the principal reason that affected activity was the implementation of higher brokerage commission, which caused institutional and individual investors largely at bay.

“It caused a bit of uncertainty and fear as a small group of traders and a couple of brokers also stood out in a corner meeting that seemed to give sense of a protest,” said one market watcher. Traded volume slipped to Rs4.8 billion, from 10.6 billion.

Analysts said that investors await the outcome of Financial Action Task Force’s review on Pakistan’s compliance report.

Further­more potential confrontation between the government and opposition parties due to Azadi march has also weighed on investors sentiments.

International crude prices also dipped during the session, which had negative impact on the exploration and production stocks and neutral to negative expectation on financial results of refineries and oil marketing companies kept selling pressure on such stocks.

The volume plunged 52pc to 137.9m shares, from 287.1m while traded value also declined by 55pc to $30.8m, as against $67.7m.

Stocks that contributed significantly included World­call Telecom, TRG Pakistan, Lotte Chemical, Unity Foods and Fauji Cement, which formed 38pc of total volume.

Commercial banks were the top laggard to the index with 133 points, followed by cements at 52.

Scrip-wise, major fall was noted in Habib Bank, down 1.93pc, MCB 1.67pc, United Bank 1.21pc, National Bank 2.84pc, Faisal Bank 4.79pc, Lucky Cement 3.61pc, Engro Corporation 0.83pc, Fauji Fertiliser 0.74pc and DG Khan Cement 1.96pc, Searle Company 4.61pc, Pakistan Oilfields 1.09pc, Nishat Mills 3.50pc and Sui Northern Gas Pipelines 2.50pc.

Published in Dawn, October 15th, 2019