Trading volumes soared to 473.7 million shares compared with Tuesday’s tally of 353.6 million. PHOTO: FILE

Market watch: KSE-100 falls as lockdown fear spreads

Benchmark index dives 632.88 points to settle at 40,571.48


Our Correspondent September 30, 2020
KARACHI:

The Pakistan Stock Exchange (PSX) once again landed in the red on Wednesday after a day’s respite with the benchmark KSE-100 index losing over 600 points and falling below the 41,000-point mark.

The benchmark index, after midday, succumbed to the pressure coming in the wake of news of increasing coronavirus cases in Pakistan. Talk of a likely lockdown to be imposed in the economic hub – Karachi – weighed on investors’ sentiment.

The bourse faced selling pressure amid a lack of positive triggers and an uncertain political and economic outlook. Investors remained cautious throughout the trading session.

Unimpressive financial results in the cement and textile sectors dragged them down while a drop in global crude oil prices triggered sell-off in the oil sector.

At close, the benchmark KSE-100 index recorded a decrease of 632.88 points, or 1.54%, to settle at 40,571.48 points.

JS Global analyst Maaz Mulla said early recovery was witnessed at the bourse when the market touched intraday high of +234 points. However, later news of increased Covid-19 cases and talk of a lockdown shattered the overall investor confidence.

The market stooped to intraday low of -709 points and closed at 40,571, down 633 points.

Traded volume stood at 474 million shares. Hascol Petroleum (-7%), Unity Foods (-4.7%) and K-Electric (-0.5%) were the volume leaders, contributing a cumulative 178 million shares.

“Going forward, we recommend investors to book profit on strength and consider any downside as a buying opportunity,” the analyst said.

Overall, trading volumes soared to 473.7 million shares compared with Tuesday’s tally of 353.6 million. The value of shares traded during the day was Rs15.4 billion.

Shares of 417 companies were traded. At the end of the day, 98 stocks closed higher, 304 declined and 15 remained unchanged.

Hascol Petroleum was the volume leader with 86.6 million shares, losing Rs1.52 to close at Rs20.18. It was followed by Unity Foods with 66.2 million shares, losing Rs0.82 to close at Rs16.65 and K-Electric with 24.8 million shares, losing Rs0.02 to close at Rs4.21.

Foreign institutional investors were net sellers of Rs357.1 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.

 

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