Market took a major bantering on Tuesday after resisting the tide of profit taking since Friday. The meteoric rise of Index observed last week was matched on Tuesday with a slide of ~800pts, although the index closed -754pts (unadjusted). A host of factors could have played a role behind Tuesday’s activity, including MSCI rebalancing, delay in launching State Enterprise and Opportunity Fund and also negative news flow on Cement manufacturers.
Adding salt to the injury, conjecture on upcoming Budget also led to bearish sentiment amongst investors. Nonetheless, profit booking was already on the anvil post a rapid increase in Index last week.
Selling was observed across the board; however, major volumes were seen in Cement, Banks and Chemical sectors.
The Index closed at 34,949pts as against 35,697pts showing a decline of 748pts (-2.1% DoD).
Sectors contributing to the performance include E&P (-170pts), Fertilizer (-163pts), Banks (-159pts), O&GMCs (-74pts) and Cement (-59pts).
Volumes increased from 125.2mn shares to 152.3mn shares (+22% DoD). Average traded value also increased by 46% to reach US$ 49mn as against US$ 33.5mn.
Stocks that contributed significantly to the volumes include FCCL, BOP, UNITY, EPCL and MLCF, which formed 28% of total volumes.
Stocks that contributed positively include NESTLE (+24pts), PAKT (+17pts), PKGS (+7pts), PSMC (+6pts) and HCAR (+5pts).
Stocks that contributed negatively include OGDC (-66pts), FFC (-62pts), HBL (-59pts), POL (-53pts) and PPL (-38pts).