KARACHI: Institutional profit-taking remained the theme of the day at Karachi stock exchanges as investors squared their position in the absence of triggers coupled with decline in the global commodity prices.
“Stocks closed lower amid thin activity on institutional profit taking after fall in global commodities,” Ahsan Mehanti at Arif Habib Corp said.
The KSE-100 shares index shed 403.09 points or 1.21 percent to close at 32,860.57 on Monday. KSE-30 shares index lost 307.34 points or 1.42 percent to end at 21,387.63 points.
As many as 343 scrips were active, of which 103 advanced, 218 declined and 22 remained unchanged. The ready market turnover dipped below 100 million mark and settled at 99.934 million shares as compared with 134.739 million shares in the last trading session.
“Weak global equities, limited foreign interest and consolidation in blue chip scrips post major earning announcements at KSE played a catalyst role in bearish activity,” Mehanti added.
Analysts said that investors awaited new auto policy, privatization schedule for state owned enterprises (SOEs) and central bank’s policy rate announcements.
Khurram Schehzad at Arif Habib Limited said all the sectors witnessed profit taking in the absence of triggers while foreign selling added to the pressure.
Lucky Cement (Luck), D.G Khan Cement (DGKC) and Cherat Cement (CHCC) dropped 2.91 percent, 1.99 percent and 3.17 percent respectively. Almost all the banking scrips lost value with NBP, MCB, Bank of Punjab, UBL and Bank Al-Falah dropped by 2.23 percent, 2.98 percent, 0.96 percent, 3.04 percent and 2.76 percent respectively. Fauji Fertilizer (FFC) and Fauji Bin Qasim (FFBL) plunged by 0.9 percent and 1.24 percent while Engro Foods was up 0.78 percent.
Analysts were unanimous in their view that the market was going down because of the absence of triggers. An analyst at Sunrise Capital said that the market underwent a bearish spell as lack of triggers coupled with foreigners turning net sellers pushed the benchmark index below 33,000 points.
Highest volumes were witnessed in Jahangir Siddiqui company Limited (JSCL) with a turnover of 10.424 million shares. The scrip lost 17 paisas to close at Rs17.82. It was followed by K-Electric with 8.798 million shares. It gained 16 paisas to end at Rs7.82. TRG Pakistan was the thrid with a turnover of 5.624 million shares. It gained 15 paisas to finish at Rs15.22 per share.