Stocks closed negative on Wednesday following volatile trading that tested the nerves of investors. The Karachi Stock Exchange’s (KSE) benchmark 100-share index closed the day’s trading with a decrease of 0.44% or 154.26 points at 34,672.25.
Elixir Securities analyst Faisal Bilwani said that in the beginning the market saw a rally in oil stocks on rebound in the global crude market with the benchmark index crossing 35,000 points. However, the gains were followed by profit-taking and strong resistance in the wider market.
“Reported institutional selling initially wiped out morning gains,” he said. “A correction in global crude and Oil and Gas Development Company’s (OGDC -1.7%) first-half earnings dented confidence with the market ending the day with a 0.44% decline.”
Bilwani added that cement shares were mixed and banks also traded directionless barring MCB Bank (MCB -2%) that closed lower on reported foreign selling ahead of earnings announcement later next week.
With the market closed on Thursday, the analyst expects a volatile session on Friday, but the wider market will likely stage a comeback as oil stocks will track global crude and set the direction. Trade volumes rose to 382 million shares compared to 344 million on Tuesday.
Shares of 373 companies were traded. Of these, 224 declined, 129 closed higher and 20 remained unchanged. The value of shares traded during the day was Rs 21.6 billion.
Pak Electron was the volume leader with 36.4 million shares, gaining Rs 1.36 to close at Rs 56.26. It was followed by Pakistan International Bulk Terminal with 33 million shares, gaining Rs 0.93 to close at Rs 41.07 and Jahangir Siddiqui and Company with 27.4 million shares, gaining Rs 1 to close at Rs 20.23.
Foreign institutional investors were net sellers of Rs 761 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.
