Business

Market watch: Lacklustre activity forces PSX to close flat

Benchmark index edges down 25.72 points to settle at 41,056.22

Our Correspondent August 28, 2020

Shares of 368 companies were traded. At the end of the day, 155 stocks closed higher. PHOTO: FILE

KARACHI:

Trading activity remained lacklustre at the Pakistan Stock Exchange (PSX) on Friday, where the index traded in a narrow band virtually closing flat as late selling in blue chips wiped out early gains.

The KSE-100 index opened up but it soon entered the red zone and started losing ground in early hours. The topsy-turvy session had a dull activity amid the uncertainty in Karachi due to a record-breaking downpour and urban flooding.

Interest was seen in the exploration and production sector, however, profit-taking in other sectors prevented the index from staying in the green zone.

At close, the benchmark KSE-100 index recorded a decrease of 25.72 points, or 0.06%, to settle at 41,056.22 points.

JS Global analyst Maaz Mulla said the KSE-100 index closed 26 points down at 41,056. “Overall, range-bound activity was seen in the market,” he added.

Traded value stood at $50 million, down 58% and volumes came in at 239 million shares, down 56%.

“On the economic front, the liquid foreign exchange reserves of the country increased by $67 million to $19.72 billion by the week ended August 21, 2020,” Mulla stated.

Furthermore, major contribution to the total market volume came from TRG Pakistan (+5.3%), Hascol Petroleum (+0.4%), Pakistan Refinery (+4.3%), BankIslami Pakistan (+12.5%) and Silkbank (+6.9%).

“Going forward, we expect the equity market to trade sideways in the absence of any immediate triggers. We recommend investors to sell on strength,” the analyst said.

Overall, trading volumes plunged to 238.6 million shares compared with Thursday’s tally of 544.7 million. The value of shares traded during the day was Rs8.4 billion.

Shares of 368 companies were traded. At the end of the day, 155 stocks closed higher, 201 declined and 12 remained unchanged.

TRG Pakistan was the volume leader with 26.3 million shares, gaining Rs3.17 to close at Rs63.21. It was followed by Pakistan Refinery with 15.3 million shares, gaining Rs0.77 to close at Rs18.86 and Hascol Petroleum with 11.6 million shares, gaining Rs0.07 to close at Rs16.68.

Foreign institutional investors were net sellers of Rs298.6 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.