The Pakistan Stock Exchange continued with the southward movement on Wednesday with the benchmark KSE-100 Index losing 523.48 points as the rollover week affected the proceedings.
It means the stock market has witnessed an 875.73 points loss during the two sessions on Tuesday and Wednesday after the latest decline by 1.32 percent.
By the time trading was closed, the KSE-100 Index, it stood at 39,279.43 – representing a decline of 1.92 percent since this year – with a daily high of 39,866.99 and low of 39,027.51.
However, this selling pressure is nothing unique as it is the last week of not only the month but also of the year – commonly known as rollover week. That’s why Ali Nadeem of National First Equity Limited (NFEL) expects this trend to continue in the last two sessions of the year.
To understand the development, the selloff was triggered by the rollover week – also the last settlement week of the calendar year 2022 – as future contracts were to be settled or rolled over, with the investors’ anxiety and uncertainty stemming from the nail-biting process to see if the task is successfully accomplished. Investors – primarily mutual funds, brokers and companies liquidated – their leveraged positions to close their financial books by the June closing.
It were sectors like banks as well as oil and gas exploration which saw the biggest selloffs during the Wednesday session.
On Wednesday, the benchmark index witnessed trading of 90 companies’ shares of which 73 recorded a fall, 15 registered an increase and two remained unchanged.
As far as the volume leaders on the KSE-100 Index are concerned, Bank Alfalah topped the list with the trading of 57.89 million shares followed by K-Electric 17.79 million, Hub Power Company 6.4 million, Pakistan Petroleum 6.18 million and DG Khan Cement 5.6 million.
When it comes to the shares that suffered the biggest losses, NCL had a 5.86 percent cut while International Steels, Systems Limited, Yousaf Weaving Mills and Millat Tractors saw their prices slashed by 5.44 percent, 4.31 percent, 4.27 percent and 4.21 percent respectively.
On the other hand, the five companies with the largest gains were: Honda Atlas 6.59 percent, Pak Suzuki Motors 6.06 percent, Pakistan Tobacco Company 2.72 percent, The Searle Company 2.92 percent and Pakistan State Oil 2.28 percent.