Staff Reporter
Karachi
After a significant rise in the preceding session, the stock market retreated into the red zone on Wednesday as investors once again resorted to profit-booking.
The KSE-100 index got off to a positive start, however, the advance could not be sustained. Prevailing pre-budget uncertainty and Moody’s move to put five Pakistani banks under watch for possible ratings downgrade weighed on investors’ sentiment. The desire to consolidate gains and book profit coupled with caution ahead of Eidul Fitr holidays from May 22 to May 27 fuelled bearish activity later in the day.
At close, the benchmark KSE-100 index recorded a decrease of 225.74 points, or 0.66%, to settle at 33,932.81.
Stocks of exploration and production firms, oil marketing companies and refineries, which recorded gains a day ago, faced profit-booking on Wednesday, whereas the cement sector experienced renewed interest from investors.
Stocks that contributed positively to the index included Pakistan Services Limited (+18 points), Pakistan Tobacco (+11 points), EFU General Insurance (+9 points), Honda Atlas Cars (+8 points) and ICI (+8 points).
Meanwhile, stocks that contributed negatively were Engro (-28 points), Fauji Fertiliser Company (-28 points), Pakistan Petroleum (-27 points), Dawood Hercules (-22 points) and HBL (-18 points). JS Global analyst Maaz Mulla said bulls lost control in Wednesday’s trading session as profit-booking was witnessed across the board. The benchmark index touched intra-day low of -372 points and closed at 33,933, down 226 points.
