RECORDER REPORT

KARACHI: Pakistan Stock Exchange fell in deep red Wednesday due to heavy selling pressure in almost all sectors.

BRIndex100 lost 145.28 points or 3.28 percent to close at 4,286.69 points. BRIndex100 touched intraday high of 4,431.97 and intraday low of 4,277.36 points. Volumes stood at 100.252 million shares.

BRIndex30 declined by 855.47 points or 3.87 percent to close at 21,269.22 points with a turnover of 74.343 million shares.

The benchmark KSE-100 index plunged by 1218.74 points or 2.93 percent to close at 40,345.68 points. The KSE-100 index hit 40,274.72 points intra-day low level. Daily trading volumes slightly improved to 117.598 million shares as compared to 104.081 million shares traded Tuesday.

Foreign investors emerged net buyers of shares worth $0.1 million. The market capitalization declined by Rs 233 billion to Rs 8.352 trillion. Out of total 343 active scrips, 300 closed in negative, only 28 in positive while the value of 15 stocks remained unchanged.

Pak Elektron was the volume leader with 10.311 million shares. However, it declined by Rs 1.81 to close at Rs 34.45 followed by Bank of Punjab that lost Re 0.68 to close at Rs 11.40 with 6.951 million shares.

Rafhan Maize and Murree Brewery were the top gainers with Rs 360.00 and Rs 16.88, respectively to close at Rs 8,350.00 and Rs 746.88. Nestle Pakistan and Colgate Palmolive were the top losers with Rs 200.00 and Rs 146.99, respectively to close at Rs 11,300.00 and Rs 2,845.01.

BR Commercial Banks Index decreased by 201.35 points or 2.35 percent to close at 8,373.54 points with total turnover of 12.244 million shares.

BR Cement Index declined by 209.63 points or 4.65 percent to close at 4,296.38 points with 17.427 million shares.

BR Oil and Gas Index lost 184.3 points or 3.48 percent to close at 5,118.11 points with 9.869 million shares.

BR Tech. & Comm. Index closed at 1,119.51 points, down 35.62 points or 3.08 percent with 10.011 million shares.

BR Power Generation and Distribution Index decreased by 172.22 points or 2.95 percent to close at 5,666.63 points with 5.046 million shares.

An analyst at Arif Habib Limited said that the KSE-100 index went down significantly by more than 1,200 points. Reasons for slide vary from Fitch flashing warning signs for Pakistan’s economy to pending decision on Avenfield case pertinent to Nawaz Sharif. Institutional selling came from mutual funds and foreign side had to revise their offers down to hit execution. Weak investor sentiment rings alarm bell for the prospective sellers, who hope to sell at higher rates and in despair end up selling at the lower end of the price bands.

Selling was witnessed across the board and almost all blue chips were seen red, most of the stocks hitting lower circuit. Whole of KSE-30 index and barring 3 stocks in green (PICTL, MUREB and FHAM) and 11 stocks in blue (unchanged), remaining stocks in KSE-100 were in red.

The Index closed at 40,346 points, showing a decline of 1,218 points (down 2.9 percent). Sectors contributing to the decline include Banks (down 257 points), E&P (down 204 points), Fertilizer (down 145 points), Cement (down 139 points) and O&GMCs (down 100 points).

Scripts that contributed positively include PICT (up 4 points) and MUREB (up 4 points). Stocks that contributed negatively include OGDC (down 100 points), HBL (down 85 points), LUCK (down 60 points), UBL (down 47 points) and ENGRO (down 47 points).

An analyst at Topline Securities said that the KSE-100 index experienced the sharpest decline of CY18 in absolute points, with index losing 1,219 points to close at 40,346 level, down by 2.93 percent. Cumulatively, the index has lost 1653 points in the past four trading sessions.

Compounded by lack of any positive triggers, political noise continues to keep market jittery with the verdict on Avenfield case against Nawaz Sharif and Maryam Nawaz to be announced on 6th July, 2018. Worst performing sectors included Commercial Banks, Oil & Gas Exploration Companies, and Fertilizer reducing the index by 605 points. The banking sector remained under pressure due to lower than expected inflation, in our view.