Slides from the KSE-100 on Pakistan’s inclusion in the FM index
The Pakistan Stock Exchange succumbed to selling pressure on Wednesday, fueled by MSCI’s downgrade from Pakistan to Frontier Markets relative to emerging markets, which shook investor interest.
As a result, the KSE-100 index lost 333 points as the market atmosphere remained gloomy throughout the session.
Highly indexed sectors including autos, oil, cement and banking saw massive sell-offs as weak investor minds triggered a massive sell-off on the stock market.
After a brief opening in the positive, the index started to drop in the first few minutes. Market participants resorted to mid-day picking and helped wipe out some of the losses. However, their efforts were unsuccessful due to late sales, which accelerated the downtrend.
At the close, the benchmark KSE-100 fell 333.25 points, or 0.71%, to stand at 46,396.71.
JS Global analyst Maaz Mulla said the KSE-100 index had a volatile session, marking a high and low of 46,875 and 46,310 points, respectively.
Significant selling pressure was observed in the market due to the MSCI reclassification under which the Pakistani stock exchange would be placed in frontier markets compared to the existing position in emerging markets.
The cement sector continued to lose ground under the pressure of rising coal prices. Kohat Cement (-5.3%), Lucky Cement (-3.9%), Thatta Cement (-4.7%), Flying Cement (-3.5%) and Pioneer Cement (-3%) closed in the Red.
In addition, Pakistan Petroleum (-1.1%) and Oil and Gas Development Company (-2.7%) of the exploration and production sector closed lower, in line with the fall in crude prices on the international market.
“Going forward, we recommend that investors remain cautious and wait for significant declines for further purchases,” the analyst said.
Global trading volume reached 477.9 million shares, up from 423.8 million on Tuesday. The value of the shares traded during the day was Rs 14.7 billion.
The shares of 524 companies were traded. At the end of the day, 160 stocks closed higher, 344 fell and 20 were unchanged.
TPL Corp was the volume leader with 39 million shares, gaining Rs 0.24 to close at Rs 25.52. It was followed by Telecard Limited with 37.4 million shares, gaining Rs1.54 to close at Rs23.11 and Ghani Global Holdings with 35.4 million shares, gaining Rs3.37 to close at Rs48.39.
Foreign institutional investors were net sellers of shares worth Rs 273.9 million during the trading session, according to data compiled by the National Clearing Company of Pakistan.