RECORDER REPORT
KARACHI: Stocks remained bearish Tuesday with the KSE-100 index shedding another 546 points to what analysts said negative reports on foreign selling and the government’s tax measures.
Having plunged by 705 points a day earlier, the benchmark index went in panic and closed at 31,709.36 points. Investor sentiment showed some positivity as the index was seen rising to intraday high of 32,461.63 points at the start.
Tuesday’s fall came despite foreign portfolio investment settled in the green zone marking a net buying of $ 1.20 million.
However, the market observers cited the investor concern over November’s increased foreign selling data and the revenue-conscious government’s “mini budget” plans to raise Rs 40 billion additional taxes.
“Stocks fell across-the-board amid panic on foreign selling data and concerns for Rs 40bn additional budgetary measures taken by the govt impacting corporate earnings outlook,” said Arif Habib analyst Ahsan Mehanti.
Weak sentiment on political uncertainty, uncertain economic outlook, falling global commodities and pending circular debt in the energy sector, he said, played a catalytic role in the day’s bearish activity.
“Investors were truculent while selling their positions,” said Mohammad Rizwan, Head of Sales at Topline Securities.
Trading turnover grew by 32 percent to 189 million shares compared to previous 143 million. The value of stocks traded also moved northward accumulating to Rs 7.79 billion. Of the 358 scrips traded, only 47 appreciated while 298 moved down while 13 stayed unchanged.
None of the 10 best performing issues could settle in the green in terms of valuation with Pak Elektron leading volumes with 14.8 million trade.
Others were K-Electric 13.5 million, Pace Pakistan 12.8 million, Bank of Punjab 10.6 million, TRG Pakistan 8.7 million, SSGC 6.8 million, Fauji Cement 5.8 million, Maple Leaf Cement 5.5 million, Silk Bank 5.3 million and SNGPL 5.0 million shares. Futures trade rose to 28.9 million contracts from 21.8 million of last session.
