Profit taking keeps market volatile with modest gains for KSE-100 Index

The Pakistan Stock Exchange experienced a volatile session during which it vacillated between the red and green zones, however, the benchmark KSE-100 Index closed the trading on Thursday at 38,831.58 after a modest gain of 40.49 points, or 0.10 percent, as profit taking dominated the market.

During the session, the benchmark index reached a high of 39,064.90 and low of 38,730.30 against the previous day’s level of 38,791.09.

Earlier on Wednesday, the market had ended a three-day streak during which the KSE-100 Index had shed 2,461.68 points.

During the current calendar year, the KSE-100 Index is down 4.86 percent after closing 2022 at 40,420.45 on Dec 30, translating into an overall loss of 1,588.87 points.  

Buying interest was seen in oil and gas as well as technology and telecommunication sectors, otherwise, investors opted to profit taking while keeping in mind the upcoming weekend and the State Bank of Pakistan’s Monetary Policy Committee meeting on Jan 23 (Monday) as there are fears that the interest rate would be further hiked by 1.5 to 2.0 percent, says Ali Nadeem, who is Head of Sales at the First National Equities Limited (FNEL).

He says people are not interested in long-term investment amid diminishing rate of return and volatile nature of the market, thus going for profit taking.

On Thursday, the overall market volume stood at 15.78 million shares as a total of 335 stocks were on offer with 153 of these registering an increase and 157 declining while 25 remained unchanged.

As a mark of market volatility and profit taking, one can notice that the largest gain in share price was 19.46 percent for Premier Insurance with the biggest loss 37.50 percent suffered by Al-Shaheer.

There was an increase in market capitalisation which touched Rs6.18 trillion (Rs6,179,824,608,084) against the previous level of Rs6.17 trillion (Rs6,169,730,141,206).

As far as the KSE-100 Index is concerned, its volume was recorded at 92.58 million shares after the trading of 88 stocks. During the process, the share prices of 47 were down, 40 made gains and one did not see any change.

The top five volume leaders on the KSE-100 Index were Pakistan Petroleum 13.64 million, TRG 11.05 million, Oil and Gas Development Company 11 million, Sui Northern 9.12 million, and CNERGY 7.65 million.

As far as the advancers are concerned, the share price of Pakistan Petroleum was up by 6.04 percent followed by TRG 6.03 percent, Air Link Communication 5.34 percent, First Habib Modaraba 4.82 percent, and Sui Northern 4.58 percent.

But when comes of those witnessing a decline in their share prices, the worst performers included Rafhan Maize Product 6 percent, Kohinoor Textile Mills 3.54 percent, Habib Metropolitan Bank 3.43 percent, Adamjee Insurance 3.30 percent, and Cherat Cement 3.10 percent.

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