Pakistan bourse closes lower amid volatile session

KARACHI: The Pakistan stocks opened with a positive note where bears took over for the rest of day, thus, the market ended in a red zone amid lack of positive triggers.

An analyst at Arif Habib Limited said that the market witnessed another volatile session today, adding that the KSE-100 Index opened on a positive note but could not hold the positive momentum.

“The KSE-100 Index was unable to digest the green zone due to the ongoing political unrest in the country, rising T-bill auction yields and rupee depreciation against dollar. The cement sector stayed under pressure throughout the day. Across the board profit selling was witnessed in the last trading hour which led the index to close in the red zone,” he added.

The Pakistan Stock Exchange KSE-100 shares Index shed 0.74 per cent, or 324.27 points, to close at 43,786.83 points. The KSE-30 shares Index shed 0.79 per cent, or 133.19 points, to close at 16,708.08 points.

“Investor’s confidence remained dull during the session over deteriorating political uncertainty as all eyes are set on the Supreme court’s verdict. Additionally, the rupee depreciation against dollar to close at record low of Rs189, further dented the market sentiments,” an analyst at Pearl Securities said.

The ready market volumes stood at 141.01 million shares compared with the turnover of 108.41 million shares in the last trading session.

The companies which reflected the highest gains included Unilever Foods(XD) up Rs1,000 to close at Rs25,500/share, and Shield Corp up Rs17.92 to close at Rs307.90/share.

The companies that reflected the most losses included Sanofi-Aventis down Rs67.89 to close at Rs871.11/share, and Gatron Ind down Rs39.37 to close at Rs485.63/share.

Going forward, the analysts expect the market to move in both directions until there is clarity on the political front. Hence, recommending investors to adopt the “Sell on Strength” strategy in the upcoming sessions.

The highest volumes were witnessed in Ghani Glo Hol with a turnover of 11.14 million shares. The scrip gained 33 paisas to close at Rs16.50/share, followed by Pak Elektron with a turnover of 9.24 million shares. It gained 27 paisas to close at Rs16.55/share. K-Electric Ltd remained the third with a turnover of 7.69 million shares. It shed 1 paisa to finish at Rs2.90/share.