Market watch: PSX begins week on negative note

Benchmark KSE-100 index falls 116.37 points to settle at 47,447.08


Our Correspondent July 12, 2021
Shares of 412 companies were traded. At the end of the day, 136 stocks closed higher. PHOTO: FILE

KARACHI:

Bears maintained their hold over the Pakistan Stock Exchange on Monday, in line with the market performance last week, and the benchmark KSE-100 index received another round of battering, falling more than 100 points

Concerns arising from rising coronavirus cases and depreciating rupee against the US dollar shattered investor confidence. Widespread uncertainty about developments in Afghanistan exacerbated the market’s decline.

All index-heavy sectors lost ground and closed in the red.

Earlier, trading began on a positive note, however, tables turned and the bourse plunged. The market remained on the downtrend for the rest of the session, shedding nearly 160 points during the day.

At close, the benchmark KSE-100 index recorded a decrease of 116.37 points, or 0.24%, to settle at 47,447.08.

Arif Habib Limited, in its report, stated that the market traded in a narrow range and was slowly adjusting downwards.

During the session, the benchmark KSE-100 index moved between -156 points and +152 points. Technology, steel, refinery and cement sectors were mainly under selling pressure.

 “Institutional investors have particularly been concerned about the developing situation in Afghanistan that could have implications for an otherwise peaceful law and order situation in Pakistan, as well as the increasing current account deficit, which can lead to a decline in the rupee value vs the US dollar,” the report said.

Sectors contributing to the performance included cement (-38 points), technology (-23 points), power (-15 points), banks (-11 points) and exploration and production (-10 points).

Individually, stocks that contributed positively to the index included Unity Foods (+20 points), PSX (+20 points), MCB (+14 points), Pakistan Tobacco (+13 points) and HBL (+6 points).

Stocks that contributed negatively were TRG Pakistan (-17 points), Lucky Cement (-17 points), Bank AL Habib (-16 points), Nestle Pakistan (-11 points) and Cherat Cement (-11 points).

Overall trading volumes dropped to 475 million shares compared with Friday’s tally of 506 million. The value of shares traded during the day was Rs14.3 billion.

Shares of 412 companies were traded. At the end of the day, 136 stocks closed higher, 257 declined and 19 remained unchanged.

WorldCall Telecom was the volume leader with 71 million shares, losing Rs0.21 to close at Rs3.64. It was followed by Treet Corp with 63.6 million shares, losing Rs0.52 to close at Rs60.88 and TPL Corp with 27.4 million shares, gaining Rs1.47 to close at Rs21.14.

Foreign institutional investors were net buyers of Rs192.1 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.

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