Agriculture & Allied Industries

Stocks end down on profit-taking

Stocks closed lower in a rangebound session on Thursday as investors opted for profit-taking amid prevailing economic uncertainty, traders said.

The Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index declined by 164.03 points or 0.38 percent to 42,819.72 points against 42,983.75 points recorded in the previous session. The highest index of the day remained at 43,104.52 points while the lowest level was recorded at 42,774.86 points.

Brokerage Arif Habib Ltd, in its post-session analysis, said a range-bound session was witnessed at the PSX. “The market opened in the positive zone, however, due to the rupee-dollar parity and delayed 10th review of the IMF programme snapped investors’ confidence, resulting in the index losing 214.38 points at the intraday low and closing in the red.”

Investor participation remained slow while 3rd tier scrips generated the most volumes. Sectors contributing to the negative performance included technology and communication (-28.0 points), oil and gas marketing companies (-27.1 points), E&P’s (-25.2 points), food and personal care products (-18.8 points), and vanaspati and allied industries (-12.6 points).

KSE-30 index also decreased by 53.48 points or 0.34 percent to 15,763.26 points, compared with 15,816.74 points recorded in the last session.

Traded shares decreased by 5 million shares to 181.226 million shares from 186.709 million shares. The trading value dropped to Rs6.159 billion from Rs6.663 billion. Market capital narrowed to Rs6.836 trillion from Rs6.868 trillion. Out of 346 companies active in the session, 103 closed in green, 221 in red, and 22 remained unchanged.

Topline Securities said equities closed negative where the benchmark KSE100 Index settled at 42,819 levels (down 0.38 percent).

The market opened on a positive note over a decline in international oil prices and anticipation of receiving $1.3 billion from the World Bank for emergency, agriculture and housing relief in the wake of catastrophic flood this year, it said. However, the positivity didn’t sustain at the bourse and profit-taking was witnessed in the second half, where the market made an intraday low of 214 points.

The major negative contribution came from TRG, PSO, OGDC, HBL and UNITY, which cumulatively dented the Index by 92 points.

The highest increase was recorded in shares of Sapphire Fiber, which rose by Rs80.31 to Rs1,153.31 per share, followed by Sapphire Tex., which increased by Rs76.85 to Rs1,102.18 per share. A significant decline was noted in shares of Rafhan Maize, which fell by Rs350 to Rs9,650.01 per share, followed by Nestle Pakistan, which decreased by Rs145 to Rs5,755 per share.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed sharply lower on weak earnings outlook.”

Rupee instability, dismal data on large scale manufacturing industries output for Sep’22, surging dollar bond default risk index and a slump in global stocks and crude oil prices played a catalyst role in the bearish close, he added.

Bankislami Pak. remained the volume leader with 17.130 million shares that increased by 69 paisas to Rs13.92 per share. It was followed by Unity Foods Ltd with 11.590 million shares that closed lower by 99 paisas to Rs17.37 per share.

Other stocks that recorded a significant turnover included Telecard Limited, Ghani Chemical, WorldCall Telecom, TRG Pak Ltd, Hascol Petrol, JS Bank Ltd, K-electric Ltd., and Hub Power Co.

Shares’ turnover in the future contracts decreased to 46.405 million shares from 55.607 million shares.

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