KARACHI: Shares tumbled on Tuesday as investors opted to book profit after announcement of major corporate results. The KSE-100 index plunged by 268.36 points, or 0.79 per cent, to close at 33,575.94.
Volumes in terms of shares traded rose 25pc to 330 million shares over 263m that changed hands a day ago, but trading value declined by 26pc to Rs11.9 billion from Rs16.1bn. It was attributable to higher volumes in second and third-tier stocks.
Small cap stocks like Bank of Punjab (BoP) and KASB Bank witnessed huge volumes of 74m and 64m shares, respectively. BoP saw interest after it announced healthy Jan-March results, while KASB Bank fell by 27.9pc after the SBP initiated its amalgamation process with BankIslami Pakistan (BIPL).
Engro fell 2pc after it announced lower-than-expected earnings of Rs3.6bn (eps Rs6.9). The company also declared cash dividend of Rs2 per share.
On Tuesday foreign investors bought shares worth net $3.42m, while companies were major sellers of $2.84m worth stocks. Month-to-date the market has witnessed net foreign portfolio inflow of $27.2m.
Analyst Ahsan Mehanti at Arif Habib Corporation stated that the stocks closed bearish at KSE amid institutional profit-taking post major earnings announcements.
Analyst Umair Hasan at JS Global stated that a number of significant corporate results announced throughout the day failed to create trigger in the market.“Weak global commodities, investors run on a local stock brokerage, dismal earnings in oil sector and concerns for economic impact of over $1bn profit repatriation by foreign companies played a catalyst role in bearish activity at the KSE.”
Profit-taking was witnessed across the cement sector with DGKC, MLCF, LUCK ending 1.8pc, 0.8pc and 0.7pc lower while weak financial results of FCCL continued to create pressure on the stock.
PSO remained under pressure on the back of weak corporate results as the stock ended 1.6pc lower. Oil and gas sector also remained weak as POL, OGDC and PPL all ended 1.3pc, 0.9pc and 0.4pc lower.