Bears mounted pressure on the benchmark KSE-100 index for the fourth consecutive session as market sentiments were weighed by the collection of capital gain tax, high commodity prices besides geopolitical conditions.
On Wednesday, the KSE-100 index clocked at 47,247 level after posting about 98 points loss by the closing bell. The trading activity resumed on a negative note, as the Index traded in a range of 341.03 points or 0.72 percent of the previous close, showing an intraday high of 47,375.67 and a low of 47,034.64.
Irfan Saeed, Senior Vice President, BMA Capital Management limited said that the index opened the session and lost over 311 points owing to selling spell, which was primarily triggered by brokers and individuals, since the National Clearing Company of Pakistan limited (NCCPL) has announced to collect CGT on the data till May 2021, which has taken Market participants by surprise, inflating their payable, since as a lot of Investors have been booking losses in June to net off gains. Moreover, higher international oil prices weighed on inflation expectations, while resurgence of Covid-19 virus cases played on investors’ minds, dragging the market down because the reintroduction of curbs would deal a significant blow to the recovering economy. Market sentiments also continue to dwindle over rising regional instability owing to sudden withdrawal of US forces from Afghanistan in absence of strategic pull-out, which has raised security concerns for bordering nations as well as higher risk of refugee exodus in Pakistan. The market capital decreased by Rs.32.48 billion, while total value traded decreased by 2.64 billion to Rs.14.97 billion.
The volume at kse-100 receded from 213 million shares recorded in the previous session to about 158.29 million shares, while the all share index volume reduced from 541 million shares to 412 million shares.
At kse-100 the volume chart was led by Fauji Foods Limited followed by WorldCall Telecom Limited and TPL corp Limited. The scrips exchanged 41.17 million, 30.16 million and 20.27 million shares. As per the National Clearing Company of Pakistan limited (NCCPL) foreign investors were net buyers of worth $0.26 million worth of shares.
Among local investors, Brokers , Individuals and Mutual Funds led the selling chart, which offloaded $3.6 million and $2.7 million and $1.58 million worth of equities. Whereas, Companies and Insurance Companies led the buying chart, and mopped up $3.9 million, $3.4 million million worth of equities.
During the session, sectors which dented the index were Oil & Gas Exploration Companies with 52 points, Tobacco with 29 points, Cement with 20 points, Textile Composite with 11 points and Fertilizer with 11 points.