Dealers said the sale of mutual funds in over-bought shares in the stock was controlled on Wednesday, while concerns over possible monetary tightening also kept the boundary market in a state of adjustment.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) lost 0.49% or 226.29 points to close at 45,676.94 points. The volume fell from 491.787 million to 476.618 million shares on Tuesday. The KSE-30 index also lost 0.66% or 127.11 points to close at 19,025.55 points.
Topline Securities said in a note that the intra-day low of 357 points in the market since the opening of the sideways was due to the release of funds, according to the market chatter. Despite international oil prices, the energy sector fell 1.5 percent. Brokerage, meanwhile, added that HUBC and ENGRO declined the index by a total of 54 points.
Shahab Farooq, director of research at NextCapital, said the market is concerned between taking profits across the board over fears of rising interest rates over the next few months.
“In the coming season, healthy payments will continue to drive the market,” Farooq added.
“The market has been in a state of adjustment where more buying has taken advantage of the situation,” said Salman Ahmed, head of institutional sales at Aba Ali Habib Securities.
The coming sessions will see further decline in the index. Ahmed added that there may be some limited benefits to the patch.
Of the 413 active scripts, 150 benefited, 246 lost, and 17 remained unchanged.
Arsalan Soomro, Managing Director, KASB Securities, said that the market is under pressure today due to excessive financial gain, profiteering and fear of speculation sold by mutual fund investors.
“Stocks are finding their new limits and sectors are shifting for the next phase of the rally,” he added.
Soomro said the positive interest was mainly in Unity Good and Lotte Chemicals, while there was pressure in the refineries, oil and technology sectors.
Mehroz Khan, a research analyst at Pearl Securities, said the return of mutual funds has put selling pressure on the market, while speculation is rife that the policy rate on banking stocks will not change.
In addition, the ECC has postponed textile policy for another week. In addition, the government is ready to increase electricity tariffs this week, ”he said.
“We expect the market to see higher selling pressure. Therefore, we reiterate our position to adopt a ‘sell on power’ strategy for investors in the days to come.
Ahsan Mohanty, an analyst at Arif Habib Corporations, said stocks were lower at the earnings season rally due to increased purchases beyond the company’s profit and fears of ongoing political uncertainty.
The investor’s concerns over the falling value of the rupee this week, rising circular loans and uncertainty over the announcement of SBP policy this week weighed on the index, he added.
Island Textile closed at Rs 1,844.94 / share with an increase of Rs 128.71 and Sapphire Textile rose by Rs 26.34 to Rs 1041.33 / share. Rafan Maize closed at Rs 9,900 / share, down Rs 89.99, and AKD Capital closed at Rs 415.64 / share, down Rs 33.69, ending as the main losers.
Silk Bank Limited led the volume with 42.706 million shares. The script ended with an increase of Rs 01.09 at Rs 1.99 / share. Kot Addu Power had the lowest turnover with 9.563 million shares, rising by Rs 0.45 to close at Rs 41.01 / share.