KARACHI: Stocks snapped the 9-day record-setting streak as the KSE-100 index, after a volatile session, lost over 1,000 points to settle below 109,000 on Tuesday on aggressive profit-taking.
The market opened in the green, extending its overnight bullish momentum fuelled by an expected rate cut optimism. However, the influx of discouraging data took the investors on a rollercoaster ride, making intraday highs and lows by 1,789 and 2,259 points.
Ahsan Mehanti of Arif Habib Corporation said stocks closed bearish on global equities downturn on geopolitical tensions in the Middle East and dismal remittances falling by 5pc month-on-month in November.
He added that consolidation amid concerns for government tax collection shortfalls, weak global crude oil prices and slippages in IMF targets under EFF further depressed investor sentiments.
Topline Securities Ltd said the benchmark index experienced a volatile trading session as the KSE-100 index oscillated within a massive 4,000-point range. The much-needed profit booking took centre stage, with the index hitting an intraday high at 111,759.58 and a low at 107,711.40 points before closing at 108,896 points after losing 1,073.74.
The session began bullishly, driven by robust buying interest in key sectors following encouraging macroeconomic developments. However, the gains were short-lived as investors opted to lock in profits, especially in heavyweight sectors, leading to a sharp intraday decline. Despite the turbulence, the market managed to close off its lows, signalling underlying investor confidence.
Sazgar Engineering Works Ltd from the auto sector closed 5.50pc lower than the previous day, following a decline in four-wheeler month-on-month (MoM) sales. The company reported 584 units in November, a significant drop from 1,002 units sold in October.
Concerns surrounding the advance-to-deposit ratio (ADR) have cast a shadow over the banking sector, with Bank Al-Habib, MCB Bank, United Bank, and Bank Alfalah facing the brunt of the pressure, ultimately closing in negative territory.
Major contributors to the index’s surge were Mari Petroleum, Lucky Cement, Attock Refiner, Systems Ltd, and The Searle, which collectively added 508 points. Conversely, UBL, Bank Al-Habib, MCB Bank, Engro Fertiliser, and Engro Corporation dragged the index down, collectively losing 629 points.
The trading volume fell 3.1pc to 1.54 billion shares while the traded value rose 14.19pc to Rs68.8bn day-on-day.
Published in Dawn, December 11th, 2024
