Investors faced yet another weak session at the Pakistan Stock Exchange on Wednesday. Trading saw more selling than buying, resulting in the KSE-100 index down 1,690.40 points to close at 174,776.60 points.
The index dropped by 0.96% during the day. Trading started at 175,519.88 points. Initially, the market showed some improvement and the KSE-100 index reached 175,841.83 points.
However, this improvement did not last long. As selling pressure increased during the day, the index fell to a low of 174,562.88 points. The index stood at 174,776.60 points at the close of business.
The fall in the market was not limited to the KSE-100. KMI-30 Index also closed down by 2,480.72 points at 249,368.78 points. This index also recorded a decrease of about one percent.
Shares of some companies in the KSE-100 tried to support the market. Engro Fertilizers was the most significant positive impact company. Shares of Thal, Askari Bank, Engro Holdings and Dolmen City REIT also limited the decline in the index to some extent.
On the other hand, many shares of major companies remained under pressure. Declines in Meezan Bank, United Bank, Pakistan Petroleum, Fauji Fertilizer and Lucky Cement had a clear negative impact on the index.
The situation with KMI-30 was no different. Engro Fertilizers supported the index the most. In contrast, losses in shares of Meezan Bank, Pakistan Petroleum, Lucky Cement, Oil and Gas Development Company and Fauji Fertilizer Company dragged down the index.
Business activity was also notable. The total volume of shares of the companies included in the KSE-100 was 261.56 million shares. The trading volume in the KMI-30 constituents was recorded at 99.61 million shares.
Interestingly, the year-to-date performance of the KSE-100 has been marginally positive despite the recent decline. The CYTD increase of the index is 0.41 percent. However, Wednesday’s decline showed that investors are currently taking a cautious approach in the market.
The overall picture from the market data shows that investors who sold were more prominent on Wednesday. Despite buying in a few large companies, this effort was not enough to pull the index out of the negative zone.
The closing of KSE-100 below 175 thousand points level at the close of business was also an important development for the market. Investors will now watch in the next session to see if buying resumes or if selling pressure persists.
