KARACHI: The stock market extended its losses on Wednesday after the benchmark of representative shares opened on the lower side.
Arif Habib Ltd said stock prices dropped mainly because of the country’s political and economic instability. Investor activity declined significantly, with third-tier companies leading the volume board, it added.
Topline Securities noted that the arrest of opposition leader Imran Khan and the subsequent reaction countrywide compelled investors to stay on the sidelines.
Another dampener was the assertion by ratings agency Moody’s that Pakistan could default without an International Monetary Fund (IMF) bailout amid uncertain financing options.
As a result, the KSE-100 index settled at 41,074.95 points, down 298.86 points or 0.72 per cent from the preceding session.
The overall trading volume decreased 51.2pc to 99.2 million shares. The traded value went down 44.6pc to $11.4m on a day-on-day basis.
Stocks contributing significantly to the traded volume included WorldCall Telecom Ltd (14.3m shares), TPL Properties Ltd (6.2m shares), Bank Alfalah Ltd (4m shares), K-Electric Ltd (3.8m shares) and Maple Leaf Cement Factory Ltd (3.3m shares).
Sectors contributing the most to the index performance were commercial banking (-76.4 points), exploration and production (-63.6 points), technology and communication (-35.7 points), miscellaneous (-32.3 points) and fertiliser (-29 points).
Companies registering the biggest increases in their share prices in absolute terms were Nestle Pakistan Ltd (Rs23.28), the Thal Industries Corporation Ltd (Rs14.63), Philip Morris Pakistan Ltd (Rs11.90), Murree Brewery Company Ltd (Rs7.99) and Tandlianwala Sugar Mills Ltd (Rs7.08).
Companies that recorded the biggest declines in their share prices in absolute terms were Sapphire Fibres Ltd (Rs75.70), Bhanero Textile Mills Ltd (Rs69.23), Pakistan Services Ltd (Rs57.99), Rafhan Maize Products Company Ltd (Rs49.85) and Pakistan Tobacco Company Ltd (Rs23.90).
Foreign investors were net buyers as they purchased shares worth $0.67m.
Published in Dawn, May 11th, 2023