Losses on loan transactions are pared as PSX declines on profit-taking.

By Maggie On Dec 21, 2023

Wednesday saw a decline in the stock market as investors recorded profits and exercised caution ahead of the general elections the following year. However, dealers report that the market trimmed some losses in late trading on positive news from international lenders. Losses on loan transactions are pared as PSX declines on profit-taking.

The benchmark KSE 100-share Index of the Pakistan Stock Exchange (PSX) decreased by 385.02 points, or 0.61 percent, to finish the day at 62,448.01 points. Similarly, the KSE-30 index declined by 108.52 points, or 0.52%, to finish at 20,893.76 points.

The daily maximum index remained unchanged at 63,261.05 points, with the minimum at 61,082.50 points.

Ahsan Mehanti, an analyst at Arif Habib Corp., stated that pre-election uncertainty continued to exert pressure. “Reports of World Bank approval of $350 million financing under RISE-II and $1.2 billion ADB loan deals for budget financing contributed to a late session recovery.”

Mehanti stated that investor apprehensions regarding PSX’s high leverage and high leverage cost also contributed to the bearish close. From 1.187 billion shares, traded shares decreased by 326 million to 1.187 billion. The trading value experienced a decline from Rs29.099 billion to Rs26.038 billion. The market capital fell from Rs9.093 trillion to Rs9.027 trillion. At the close of trading, 107 of the 362 active companies ended the session in the green, 246 in the red, and 9 unchanged.

Topline Securities analyst Ali Najib predicted that equities experienced a recovery day on Wednesday. “The day’s story was divided in half… “The initial one witnessed a significant bearish surge, merely a continuation of the selling spree on Tuesday. The subsequent one offered some solace, as the benchmark index regained ground earlier lost due to the astute cherry-picking of value hunters,” he explained.

“As investors continued to deleverage their equity positions and take profits before the end of the calendar year, market sentiment remained subdued in the early hours of trading on Wednesday,” he explained. “However, value hunters could not deter the appealing valuation of blue-chip stocks, which resulted in purchasing interest at the day’s low.” Following this, there was significant purchasing interest in the power, E&P, and fertilizer sectors, with HUBC, MARI, KEL, PPL, and EFERT all contributing 179 points to the index in a positive direction. Conversely, ENGRO, OGDC, and LUCK experienced a decline of 155 points due to selling headwinds.

Unilever Pakistan Foods Limited experienced the most substantial growth, with its share price increasing by Rs249 to Rs21,799, followed by Mari Petroleum Company Limited with a share price increase of Rs52.11 to Rs2,106.79. Rafhan Maize Products Company Limited experienced a substantial decrease in value, falling by Rs100 to Rs9,800 per share. Hoechst Pakistan Limited closed with a reduced value, falling by Rs93 to Rs1,156 per share.

The benchmark continued to decline during a highly volatile session, according to Arif Habib Ltd., a brokerage firm, before recovering in the second half of the day. The market fell 2.79 percent day-on-day after reaching its intraday low before buying resumed just above the 61,000 level.

K-Electric Ltd. maintained its position as the volume leader with 280.811 million shares, each of which closed at Rs5.77, an increase of 47 paisas. Following closely behind with 211.123 million shares, WorldCall Telecom concluded the day at Rs1.55 per share, a decrease of 15 paisas.

Cnergyico PK, B.O. Punjab, Hascol Petrol, Fauji Foods Ltd, Kohinoor Spinning, P.T.C.L., Pak Elektron, and Pak Petroleum were additional securities with significant turnover. Three hundred fifteen companies issued future shares; 84 experienced an increase, 227 experienced a decrease, and four remained unchanged.