Market watch: KSE-100 falls over weak sentiment

Benchmark index decreases 0.31% to settle at 28,023.39

KARACHI: The stock market had a volatile trading session on Monday as the benchmark index oscillated between red and green zones before finally closing with a loss.

The choppy trading session came on the back of movements in global markets as worldwide fatalities from the coronavirus pandemic rose swiftly.

Furthermore, weak investor sentiment caused by decrease in international crude oil prices and a slump in exports that put pressure on the rupee sparked uncertainty. The market extended its losses towards the end of the session as investors offloaded their stockholdings.

At close, the benchmark KSE-100 index recorded a decrease of 86.18 points, or 0.31%, to settle at 28,023.39.



Arif Habib Limited, in its report, stated that the market opened on a negative note with -127 points and continued its downward march through the session with a total intra-day loss of 642 points.

“Significant price reductions in the latter half of the outgoing month also gave hope to investors of a contraction in the monthly inflation number,” it added.

JS Global analyst Maaz Mulla said a volatile session was witnessed where the market touched intra-day low of -642 points. However, recovery came in the second half following which the market closed at 28,023, down 86 points. “The cement sector continued its upward march where DG Khan Cement (+6.8%), Maple Leaf Cement (+7.4%), Lucky Cement (+6.8%), Fauji Cement (+7.7%), Pioneer Cement (+7.5%) and Cherat Cement (+7.5%) closed near their respective upper circuits,” he said.

“Going forward, we expect the market to remain bearish as the coronavirus situation prevails across the globe and recommend investors to remain cautious and wait for a further dip,” he said.

Overall, trading volumes decreased to 159.5 million shares compared with Friday’s tally of 169.4 million. The value of shares traded during the day was Rs4.2 billion.

Shares of 328 companies were traded. At the end of the day, 166 stocks closed higher, 145 declined and 17 remained unchanged.

K-Electric was the volume leader with 34.97 million shares, losing Rs0.06 to close at Rs2.65. It was followed by Maple Leaf Cement with 9.6 million shares, gaining Rs1.34 to close at Rs19.33 and Hascol Petroleum with 7.2 million shares, losing Rs0.27 to close at Rs10.65.

Foreign institutional investors were net sellers of Rs490.3 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.

Published in The Express Tribune, March 31^st, 2020.

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