Bears continued to haunt investors at Pakistan Stock Exchange (PSX) as diminishing volumes and selling pressure placed the benchmark KSE-100 under pressure as it posted a 368-point loss by the closing bell and clocked at 47,318 level.
The Index traded in a range of 630.48 points or 1.32 percent of the previous close, showing an intraday high of 47,874.69 and a low of 47,244.21.
On Wednesday, trading kicked off on an optimistic note but witnessed volatility, as intraday correction and discounted share prices attracted selective buying. However, it observed profit-taking during the session amid rising COVID cases.
In an alarming sign, Pakistan’s coronavirus death rate in July crossed the global death rate, it was reported. The death rate in July was between 2.30pc and 2.37pc in Pakistan, according to data shared by the World Health Organisation. The worldwide death rate in July was between 2.15pc to 2.17pc. Health experts say non-compliance with standard operating procedures and no vaccination can increase death rates.
Even multiple fresh triggers failed to impress market participants, as the State Bank of Pakistan’s decision to hold the policy rate at 7pc, and International Monetary Fund (IMF)’s recognition of Pakistan’s robust economic activity, were expected to inject fresh interest in the market.
Arif Habib Limited, in its report, stated that the market tumbled later in the trading session, which brought the index down by more than 400 points. It closed lower by 369 points.
“Concerns over Covid lockdown and a probe by the regulator on account of unusual price movement in certain stocks brought the market under selling pressure and became the major reasons for weak sentiment,” it said.
Earlier part of the session saw institutional investors build positions in cement and steel sectors that caused pertinent stocks to record a healthy price uptick. However, later activity in the market brought the stock prices down.
The volume at KSE-100 slightly fell from 162 million shares recorded in the previous session to 128 million shares, while the all-share index recorded a volume of 365 million shares, down from 432 million shares from the previous session.
Worldcall Telecom Limited, Byco Petroleum, Telecard Limited, Unity Foods, K-Electric and Hum Network led the major volume.
Sectors which dented the index were Technology and Communication with 90 points, Cement with 42 points, Refinery with 33 points, Commercial Banks with 31 points and Oil and Gas Exploration Companies with 30 points.
Among the scrips, the most points taken off the index was by TRG Pakistan which stripped the index of 73 points followed by UNITY with 25 points, National Refinery Limited with 17 points, Hub Power Company with 16 points and Lucky Cement with 16 points.
However, sectors propping up the index were Chemical with 13 points, Tobacco with 4 points, Miscellaneous with 3 points and Sugar and Allied Industries with three points.
Among the scrips, the most points added to the index was by Kohinoor Textile mills limited which contributed 24 points followed by Meezan Bank Limited with 14 points, Colgate Pakistan with 14 points, Pak Tobacco with 4 points and DAWH with 4 points.