Index loses 94 points on value hunting

Updated 28 Jan 2020

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Stocks moved in a tight band on the first trading day of the week with the KSE-100 index recording a drop of 93.79 points (0.22 per cent) and closing at 42,539.23.  — AFP/File
Stocks moved in a tight band on the first trading day of the week with the KSE-100 index recording a drop of 93.79 points (0.22 per cent) and closing at 42,539.23. — AFP/File

KARACHI: Stocks moved in a tight band on the first trading day of the week with the KSE-100 index recording a drop of 93.79 points (0.22 per cent) and closing at 42,539.23.

While the results season attracted some value hunters, the investor appetite vanished as a flood of disconcerting events stared them in the face. The rising inflation prompted analysts to come up with consensus expectations of a status-quo in the monetary policy to be unveiled on Tuesday.

Weak holders also liquidated their positions at the onset of the rollover week for future contracts. Finally, there was a glum outlook on Pakistan managing to wriggle out of the Financial Action Task force (FATF) grey list in the review by the watchdog due next month. On international front, Asian market and commodities prices continue to dive due to rapidly spreading coronavirus fears.

Trading began on a negative note and the index drifted all the way down to intraday low of 161 points. But the high net worth individuals stepped in to buy shares worth $3.06 million which saw the index rise to intraday high of 106 points only to succumb to the selling pressure close to the end of trading time.

Foreigners sold shares in the minor sum of $0.23m. The volume rose 14pc over the previous day to 198.5m shares while traded value declined 3pc to reach $42.5m.

Sector-wise, exploration and production companies came up for major selling and lost 93 points as all three major stocks – Oil and Gas Development Company, Pak­istan Oilfields and Pakistan Petroleum – closed in the red.

Besides them, other scrips that dragged down the index included Hub Power, lower by 1.40pc, Bank Al Habib 1.84pc, Meezan Bank 1.96pc, Lucky Cement 0.93pc and Bank Alfalah 1.25pc.

On the flip side, the index received support from Engro Corporation, higher by 0.89pc and cement scrips that included Maple Leaf, up 5.48pc, Kohat 5.49pc, Fauji 2.19pc and Cherat 2.73pc.

Published in Dawn, January 28th, 2020