Stocks fall on extensive foreign selling

KARACHI: Range-bound trading took place on the Pakistan Stock Exchange on Wednesday owing to the concerns about a selling spree by foreign investors as well as expected monetary tightening.

According to Arif Habib Ltd, the technology sector remained in the limelight throughout the day as traders placed their bets on high-beta stocks to mark quick trading gains.

On the flip side, institutional investors went for value-hunting as buying was observed in banking as well as exploration and production stocks. Investors opted for profit-booking in cement and steel shares in the last trading hour as they expected an interest rate hike by the central bank in the upcoming monetary policy.

As a result, the benchmark index lost 80.48 points, or 0.17 per cent, to close at 47,032.44 points.

Market participation increased 24.26pc to 380.55m shares on a day-on-day basis.

Sectors contributing to the benchmark index included technology and communication (193.39 points), refinery (22.49 points), chemical (18.74 points), leather and tanneries (11.76 points) and insurance (7.03 points).

Stocks that contributed significantly to the traded volume included Pakistan Telecommunication Ltd (22.71m shares), Hascol Petroleum Ltd (17.31m shares), WorldCall Telecom Ltd (16.29m shares), TRG Pakistan Ltd (16.11m shares) and TPL Properties Ltd (16.09m shares).

Stocks that contributed positively to the index included Systems Ltd (96.26 points), TRG Pakistan Ltd (77.41 points), Colgate-Palmolive Pakistan Ltd (22.80 points), Fauji Fertiliser Company Ltd (15.51 points) and Pakistan Telecommunication Company Ltd (13.41 points).

Shares that contributed negatively included Habib Bank Ltd (48.07 points), United Bank Ltd (40 points), Pakistan Petroleum Ltd (34.22 points), Lucky Cement Ltd (30.22 points) and Pakistan Oilfields Ltd (25.84 points).

Stocks recording the highest gains in percentage terms included Pakistan Telecommunication Company Ltd, which went up 10.17pc, followed by National Refinery Ltd (7.54pc), Systems Ltd (7.05pc), Service Industries Ltd (5.6pc) and TRG Pakistan Ltd (5.41pc).