Technology stocks

PSX collapses as investors post profits in tech stocks

The capital market closed the week in the red zone on Friday as investors weighing on the bleak economic outlook opted to book profits and institutional buyers focusing on value stocks, traders said.

The benchmark index of the Pakistan Stock Exchange (PSX) to 100 KSE shares fell 0.34% or 148.52 points to close at 44,118.39 points against 44,266.91 points recorded in the last session. The index’s intraday high was 44,468.89 points, while the daily low was 44,041.62 points.

Arif Habib Corp analyst Ahsan Mehanti said: “Shares closed lower amid investor concerns about the bleak economic outlook.”

Political noise, reports of an increase in repayable external debt, a current account deficit of $ 7.1 billion for July-November 21 and the instability of the rupee ahead of the council’s review. administration of the International Monetary Fund (IMF) on Jan. 12 played a catalytic role in the bearish close, he said. .

The KSE-30 index also fell 0.42% or 73.37 points to end at 17,353.47 points against 17,426.84 points in the last session.

Shares traded fell 17 million to 223.37 million shares from 240.42 million shares in the previous session. The market value declined to Rs7.33 billion from Rs8.02 billion. Market capital has shrunk to Rs7.559 trillion from Rs7.582 trillion. Of 353 companies active during the session, 136 posted gains, 194 posted losses, while 23 were unchanged.

Muhammad Mubashir, analyst at JS Research, said another lackluster session was observed. “The market opened on a positive note and gained 200 points, but ultimately, due to the lack of positive triggers, investors chose to take profit, leading the KSE-100 to close at 44,118, down 149 points, ”he said. “Going forward, we recommend that investors adopt a downward buying strategy in the banking, E&P and cement sectors.”

The biggest increase was seen in shares of Nestlé Pakistan, which rose by Rs 85 to close at Rs 5,670 / share, followed by Sanofi-Aventis which rose by Rs 52.94 to close at Rs 758.82 / action.

A big drop was noted in shares of Colgate Palmolive, which fell by Rs 186.01 to close Rs 2,313.99 / share, followed by Sapphire Textiles, which lost Rs 65.50 to close at Rs 820 / share .

A report from Arif Habib Ltd said the battle between the bulls and the bears was conquered by the bears in the last hour of trading.

“The market opened on a positive dynamic as SBP led another OMO for 63 days. The optimistic approach has faded due to investor fears of higher inflation and a decline in the total liquid foreign exchange reserves held by the SBP, mainly due to the repayment of external debt, ”the report said. report.

Activity continued to remain sideways as the market saw significant volumes of Level 3 stocks. On the flip side, during the second session, institutional buyers started looking for value stocks due to attractive multiples.

Sectors contributing to performance are technology and communication (-60 points), chemicals (-36 points), cement (-25 points), oil and gas exploration companies (-17 points) and textiles (-9 points).

Unity Foods Ltd remained the volume leader with 33.50 million shares with an increase of 64 paisa to close at Rs 1.17 / share. It was followed by Hum Network with 24.16 million shares which closed with 22 paisas to end at Rs6.66 / share.

Stocks that posted significant turnover included TRG Pak Ltd, TPL Properties, Unity Foods Ltd, Telecard Limited, Treet Corp, WorldCall Telecom, Ghani Glo Hol and K-Electric Ltd.

Sales of shares in futures contracts increased to 85.90 million shares from 77.61 million shares.