Stocks lose 406 points on profit-taking

KARACHI: Following a volatile trade on the first trading day of the week, the stock market witnessed massive selling pressure as profit taking in the last hour intensified so that the KSE-100 index eroded by 406.80 points (0.93 per cent) and closed at 43,333.76.

Investors were cautious due to the ongoing roll-over week and the index having mounted to a three-year high.

The concern in the UK and other markets over the new Covid-19 strain that compelled lock down descended to the local market where investors rushed to book profit. Oil stocks led the decline as international oil prices slumped more than 5pc during the session raising fears of negative impact on the global economies due to the virus.

Foreign investors sold shares worth $4.58 million. Among local participants, banks and mutual funds were net sellers, while individuals, brokers and insurance companies were net buyers.

Volumes remained on the higher side with daily traded volume and value clocking in at 516.44m shares (up 7.1pc day-on-day) and Rs22.47 billion (down 5.2pc DoD) respectively. The volume leaders were Worldcall Telecom Ltd with 36.56m shares traded followed by TRG Pakistan with 38.1m shares changing hands Sector-wise, exploration & production, refinery and cement sectors remained under pressure. Stocks on the steel sector rallied on the back of expected price increases by local manufacturers. International Industries Ltd, Amreli Steel Ltd, Mughal and International Steel all closed in the green.

The technology and communication sector witnessed the greatest activity throughout the day, generating a volume of 104m shares.

Analyst Ahsan Mehanti said that investors’ concern for rupee instability; gas crisis impacting industries and uncertainty over new International Monetary Fund terms for Extended Fund Facility also kept market under duress.

Stocks that were the major drags included Oil and Gas Development Company, down 69 points, Pakistan Petroleum Ltd 60 points, Habib Bank Ltd 33 points, Engro Pakistan 32 points and Pakistan Oilfields Ltd 31 points.

Analysts and traders believe that the volatility in the market may continue ahead in the shortened roll-over week.