KARACHI:
The stock market took another hammering on Monday, with the benchmark KSE-100 index diving over 250 points by the day’s end to close below the 47,000-point mark.
The benchmark index remained under pressure throughout the session and the market fell as low as 46,672.19, however, trading volumes improved slightly on day-on-day basis.
On the corporate front, Pakistan Refinery announced its financial results for the year ended June 30, 2021 with earnings per share clocking in at Rs1.52 against a loss per share of Rs17.54 in the previous fiscal year.
In the morning, trading began on a negative note and the pessimism was bolstered by gloomy local and international news flows. Worsening situation in Afghanistan impacted investment climate and looming uncertainty restrained the index from entering into the green zone.
According to latest news reports, the Taliban formed government in Afghanistan after taking control of the presidential palace in Kabul while western nations scrambled to evacuate their citizens on Monday amid chaos at the airport.
Upbeat data of large scale manufacturing (LSM) sector, which grew at a 16-year high level of 14.85% in the fiscal year ended June 30, 2021, failed to entice market players to reverse the direction of the market.
At close, the benchmark KSE-100 index recorded a decrease of 257.05 points, or 0.54%, to settle at 46,912.79.
JS Global analyst Neelum Naz said, “regional geopolitics weighed in on the equity market after the President of Afghanistan flew out of the country, paving way for Taliban to regain power 20 years after a US-led military invasion ousted them.”
Partially recovering from an intra-day low of 46,672 (-498 points), the KSE-100 index closed the session at 46,913, down 257 points.
WorldCall Telecom (+0.3%), Telecard Limited (+1.1%), TRG Pakistan (-0.5%), Azgard Nine (-5.3%) and Treet Corp (-0.8%) were the largest contributors to the total traded volume of 252 million shares.
“Further weakness in the market can be expected in the coming days,” Naz said, adding that “investors are advised buy on dips across the board keeping a medium term outlook in mind.”
Overall trading volumes rose to 251.8 million shares compared with Friday's tally of 213.4 million. The value of shares traded during the day was Rs10.1 billion.
Shares of 470 companies were traded. At the end of the day, 120 stocks closed higher, 329 declined and 21 remained unchanged.
WorldCall Telecom was the volume leader with 22.2 million shares, gaining Rs0.01 to close at Rs3.35. It was followed by Telecard Limited with 19.4 million shares, gaining Rs0.18 to close at Rs17.29 and TRG Pakistan with 13.7 million shares, losing Rs0.81 to close at Rs163.95.
Foreign institutional investors were net sellers of Rs1.2 billion worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.
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