Bearish spell continues in the stock market – Newspaper

KARACHI: The stock market continued its decline for the third consecutive session on Wednesday as nervous investors opted to take profits on concerns over tough fiscal measures.

Ahsan Mehanti of Arif Habib Corporation said the market fell sharply due to persistent rumors of higher tax measures in the capital market in the 2024-2025 budget and uncertainty over SBP’s interest rate policy.

He added that political noise and bleak fertilizer offtake figures in May also contributed to a bearish close.

In its market report, Topline Securities Ltd noted that the negative trajectory was mainly influenced by weaknesses in the banking and exploration sectors. Companies such as Habib Bank Ltd, Oil and Gas Development Company, Bank Alfalah Ltd, Bank Al-Habib Ltd and Pakistan Petroleum Ltd contributed negative 225 points to the index.

However, some positive moves were recorded in Engro Fertilisers, Faysal Bank and TRG Pakistan, which together added 37 points.

As a result, the benchmark index reached an intraday high of 74,758.11 and a low of 74,136.52. However, the KSE 100 index settled at 74,219.44 points after losing 447.22 points or 0.60% on a daily basis.

However, total trading volume fell further by 15.90% to 348.54 million shares. The traded value also fell by 10.49% to Rs16.38 billion day-on-day.

Stocks that contributed significantly to the trading volume included K-Electric (25.28 million shares), Amtex Ltd (23.58 million shares), WorldCall Telecom (16.06 million shares), National Bank (14.25 million shares ) and Dewan Farooque Motors (14.21 million shares).

The stocks that registered the most significant increases in their share prices in absolute terms were Exide Pakistan (Rs39.93), Sazgar Engineering (Rs27.95), Ismail Industries (Rs25.66), Atlas Battery (Rs22.38) and Hafiz Ltd (€12.42).

The companies that recorded the big declines in their share prices in absolute terms were Unilever Pakistan Foods Ltd (Rs115.03), Hallmark Company (Rs31.74), Pakistan Engineering (Rs20.30), Fateh Industries (Rs14.31) and Rafhan Maize. Products Company Ltd (Rs 12.93).

Foreign investors remained net buyers as they bought shares worth $0.61 million.

Published in Dawn, June 6, 2024