Market watch: KSE-100 retreats ahead of monetary policy
Shares of 380 companies were traded. At the end of the day, 107 stocks closed higher. PHOTO: FILE
Stocks struggled to find a floor on Friday as sell-off resumed on lockdown worries after Thursday’s brief respite.
Bears got control of the market and the KSE-100 index endured another round of battering, diving over 400 points in intraday trading.
Stocks lost ground in the wake of lockdown fears, which dented investors’ sentiment. The sell-off intensified in the second session despite a rise in global equities and oil markets.
Investors were also wary ahead of the monetary policy announcement by the State Bank of Pakistan on Monday next week.
Though the index stayed in the green for a brief period in the first session, it failed to advance further and succumbed to selling pressure in the second session, sparked by news that the government was going to impose smart lockdowns.
The market recovered some of the losses recorded during the day and closed down by over 350 points.
At close, the benchmark KSE-100 index recorded a decrease of 353.52 points, or 0.87%, to settle at 40,187.18 points.
Arif Habib Limited, in its report, stated that the market took a negative turn with a drop of 414 points during the day and closed lower by 353 points.
“Selling pressure built up in bank and cement stocks for reasons next week would be a rollover week and the government imposed a smart lockdown in areas where coronavirus cases were increasing,” it said. “Moreover, the central bank is due to announce monetary policy on Monday.”
Exploration and production stocks bit the dust, although international crude oil prices were up and trading positive.
Sectors contributing to the performance included banks (-91 points), cement (-63 points), investment banks (-52 points), technology (-38 points) and oil and gas marketing (-30 points).
Individually, stocks that contributed positively to the index included Interloop (+7 points), Millat Tractors (+5 points), Unity Foods (+4 points), Nishat Mills (+4 points) and Philip Morris (+4 points).
Stocks that contributed negatively were Dawood Hercules (-51 points), UBL (-29 points), Lucky Cement (-26 points), TRG Pakistan (-23 points) and Bank Alfalah (-18 points).
Overall, trading volumes edged up to 189.9 million shares compared with Thursday’s tally of 188.6 million. The value of shares traded during the day was Rs7.6 billion.
Shares of 380 companies were traded. At the end of the day, 107 stocks closed higher, 256 declined and 17 remained unchanged.
Unity Foods was the volume leader with 39.7 million shares, gaining Rs0.39 to close at Rs23.72. It was followed by TRG Pakistan with 14.2 million shares, losing Rs2.21 to close at Rs53.54 and Maple Leaf Cement with 10.1 million shares, losing Rs1.39 to close at Rs38.66.
Foreign institutional investors were net sellers of Rs93.41 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.