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Investors take profit after two days of gains | The Express Tribune

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Investors take profit after two days of gains | The Express Tribune


Benchmark KSE-100 index closes up 30 points at 36,265.12. PHOTO: AFP/FILE


KARACHI:

The Pakistan Stock Exchange (PSX) on Tuesday reversed course after two days of notable gains as investors resorted to profit-booking at higher valuations, pulling the benchmark KSE-100 index down by over 1,500 points.

The market’s downturn was primarily triggered by selling in blue-chip shares from fertiliser, energy, banking and technology sectors. The battle for control between bulls and bears continued for almost throughout the day and eventually the latter prevailed.

In the morning, the market got off to a positive start, when it hit the intra-day high of 163,385 points. It remained in the black for only a brief period and dropped quickly. Following continuous fluctuations, the index reached its intra-day low of 161,159 more than an hour before the end of trading.

At close, the KSE-100 index registered a significant fall of 1,521.39 points, or 0.93%, and settled at 161,281.77.

In its review, Topline Securities said bears returned to the stock market as investors booked profits after a two-day rally. “The local bourse witnessed renewed bearish sentiment where investors opted for profit-taking. The KSE-100 index remained under pressure for most of the day, touching the intra-day low of 1,643 points before settling at 161,282, down 1,521 points (0.93%),” it said.

Blue-chip counters including Engro, Mari Petroleum, Bank AL Habib, MCB Bank and TRG Pakistan led the decline, which collectively eroded 543 points from the benchmark index.

Despite the negative close, the overall market activity stayed vibrant, with trading volumes rising to 899 million shares and traded value reaching Rs37 billion, Topline added.

Arif Habib Limited (AHL) reported that Tuesday saw a consolidation phase following two sessions of strong gains. On the KSE-100 index, 17 shares rose while 81 fell with Fauji Fertiliser Company (+1.77%), Pakistan Services (+9.62%) and DH Partners (+10%) contributing the most to index gains. Engro Holdings (-1.6%), Mari Petroleum (-2.06%) and Bank AL Habib (-2.32%) were the biggest index drags, it said.

AHL pointed out that Finance Minister Muhammad Aurangzeb in a virtual speech at the Pakistan International Maritime Expo & Conference said that seafood exports could cross $2 billion in the next three to four years compared to the current exports of $500 million.

Among corporate news, Fauji Cement (-1.75%) and Kapco (-1.44%) will jointly acquire 84.06% of the total issued and paid-up capital of Attock Cement. “The upside is anticipated to resume from the current support zone, which is 160-162k,” AHL remarked.

Overall trading volumes decreased to 899.4 million shares compared with the previous tally of 949.4 million. The traded value of shares stood at Rs37.3 billion.

Shares of 479 companies were traded on the ready market, out of which 133 closed higher, 314 declined and 32 remained unchanged.

WorldCall Telecom led the volumes chart with trading in 78.9 million shares, losing Rs0.04 to close at Rs1.81. It was followed by Telecard Limited with 76.9 million shares, rising Rs0.81 to close at Rs12.68 and K-Electric with 71.6 million shares, gaining Rs0.23 to close at Rs5.52. Foreign investors were sellers of shares worth Rs717.8 million, according to NCCPL.



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AI could make humans less intelligent, warns Royal Observatory

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AI could make humans less intelligent, warns Royal Observatory



Paddy Rodgers said the Observatory’s rich history showed the power of human knowledge and the need to avoid “dependence” on AI.



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Why does Amazon have no Western rivals?

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Why does Amazon have no Western rivals?


First, to be sure, Amazon isn’t without competitors in any of the segments it is in, including e-commerce. Major US retailers like Walmart and Target both have broad-based, rapidly-expanding online retail arms, and offer their own versions of Amazon’s Prime subscription service.



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Weather & then war lead to tears in India’s onion basket

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Weather & then war lead to tears in India’s onion basket


Seeking relief: Onion growers want an MSP of Rs 3,500/quintal and a Rs 1,500-a-quintal compensation for distress sales

Rain clouds rolled over Maharashtra’s onion belt. Then came war winds from West Asia. Prices collapsed. Crops rotted. Farmers counted losses in rupees — and sold tears by the quintal. Across Nashik, Solapur and Chhatrapati Sambhajinagar, onion growers are reaping a bitter harvest this season as wholesale prices at agriculture produce market committees (APMCs) have crashed far below production costs.Prakash Galadhar, a farmer hailing from Paithan taluka in Chhatrapati Sambhajinagar, hauled 1,262kg of onions he had harvested to market last week. After deductions for labour, loading and transport, his final balance showed he owed the trader Re 1.In Satana APMC of Nashik district, farmer Jitendra Solanke brought 30 quintals hoping to recover at least part of his investment. Traders first offered Rs 50 a quintal. After he protested, rate climbed to Rs 175 a quintal — Rs 1.75 a kg.Still, numbers refused to add up. “I spent Rs 1,200 per quintal to grow crop. After sale, labour and transport charges, only Rs 500 remained. The loss mounted to Rs 36,000,” Solanke said.Inputs have become expensive — seeds, fertilisers, diesel, mechanised farming and labour costs have all risen sharply — while market prices have sunk into mud.“We sell onions at Rs 4 to Rs 5 per kg while production cost is over Rs 12,” said Bhausaheb Jagtap, a farmer from Pune district. “After paying everybody, nothing is left,” Jagtap said.Prices have been sliding since Feb this year. At Lasalgaon APMC in Nashik — country’s largest onion wholesale market and benchmark for national rates — the kitchen staple is currently selling between Rs 400 and Rs 1,600 a quintal. Nearly 80% of arrivals fetch less than Rs 800 a quintal.In Solapur APMC, arrivals on May 13 touched 14,756 quintals. Prices ranged from Rs 100 to Rs 1,700 a quintal, or Rs 1 to Rs 17 a kg. A year ago, onions sold there for Rs 2,500 to Rs 3,000 a quintal.Growers said break-even price stands near Rs 18 a kg. “Losses are massive because nearly 80% of onions are selling between Rs 400 and Rs 800 per quintal,” said Bharat Dighole, president of Maharashtra Onion Growers’ Association.Market experts blamed a perfect storm: bumper arrivals, weak domestic demand, export disruptions and rain-damaged produce flooding mandis.“Geopolitical tensions involving Iran, US and Israel disrupted export markets and reduced overseas demand,” said Vikas Singh, vice president of Horticulture Produce Exporters’ Association of India.Unseasonal rain between March 19 and 21 added another blow to the farmers. Showers lashed Nashik district just as summer onion harvest began, damaging ready crop and triggering rot during storage. “Only 30% of produce was grade-1 quality,” said Prakash Jadhav, head of onion department at Solapur APMC. “Rain damage and long storage hurt quality.”Farmers are demanding onions be brought under minimum support price, pegging at Rs 3,500 a quintal. Growers’ groups want Maharashtra govt to compensate farmers by Rs 1,500 a quintal for distress sales.(Inputs from Prasad Joshi)



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