KARACHI: Pre-budget profit-taking continued for the second day with the KSE-100 index recording a fall of 370.36 points, or 0.77 per cent, to close below the 48,000 level at 47,778.
The day was saved by the individuals who picked up stocks at dips of the value of $7.99m. Companies also added shares worth $1.59m. The rest of the market participants mainly the insurance companies and banks sold shares on uncertainties relating to the ongoing negotiations with the IMF before the announcement of the budget on the 11th.
The market took off to a hesitant start in the positive and the index managed to consolidate with intraday high gains of 164 points. As most of the positive news was already factored in the stock prices, investors were wary of taking fresh positions at higher levels. Reports of trade deficit expansion by 30.56pc to $27bn in 11MFY21 on account of higher imports did not go well with the investors.
On the market front, the announcement of Kapco a day earlier of a board meeting to declare an interim dividend proved to be a disappointment for investors, where a lower-than-expected payout at Rs5 per share was announced, post release of circular debt related funds. Resultantly, the stock came in for hammering.
Shares went into a free-fall mid-day which witnessed the index hit intraday low by 422 points.
Sector-wise major selling pressure was borne by banks, E&P, technology steel, cement, O&GMCs and refinery. Scrips that scratched off most points from the index included HBL, ABL and BAHL from the banking sector and Pioneer, Kohat and Cherat from the cement sector. As international oil prices eased, OGDC, Pakistan Petroleum and Pakistan Oilfields closed in the negative. Automobile sector remained patchy with Ghandhara, Hino and Indus Motors closing higher.
The trading volume increased 30pc over the previous day to 1.355bn shares though the traded value declined 3pc to Rs23.bn to 1,355.2m shares mainly as much of the day’s trading took place in low-priced stocks. WorldCall reclaimed its place as the top traded stock with 717m shares changing hands.
Published in Dawn, June 10th, 2021