Market watch: Current account deficit drags KSE-100 down
Shares of 362 companies were traded. At the end of the day, 212 stocks closed higher. PHOTO: FILE
The Pakistan Stock Exchange on Friday failed to sustain the recovery posted a day earlier as the KSE-100 index succumbed to selling pressure and closed with a loss of 284 points.
Investor sentiment weakened after State Bank of Pakistan (SBP) data depicted a widening of the current account deficit to $1.5 billion in August 2021 and a 10% fall in foreign direct investment during the same month.
Earlier, trading began on a positive note and the KSE-100 index ended first half of the session above 47,000 points after a steady climb. Selling pressure gripped the bourse in the second half and the market wiped out all the gains, ending the day in the red.
At close, the benchmark KSE-100 index recorded a decrease of 284.38 points, or 0.61%, to settle at 46,636.08.
JS Global analyst Maaz Mulla said that the KSE-100 index experienced a volatile session with a high and low of 261 points and 365 points respectively.
Selling pressure was seen in the market due to the rebalancing of FTSE Index.
In the technology sector, Avanceon (-3.5%), Telecard (-3.1%), NetSol Technologies (-2.8%), Systems (-1.8%) and TRG Pakistan (-1.5%) lost ground and closed in the negative region.
“Going forward, we recommend investors to book profit and wait for further buying,” the analyst said.
Overall trading volumes decreased to 387.3 million shares compared with Thursday’s tally of 405.2 million. The value of shares traded during the day was Rs16.2 billion.
Shares of 525 companies were traded. At the end of the day, 173 stocks closed higher, 327 declined and 25 remained unchanged.
WorldCall Telecom was the volume leader with 42.4 million shares, losing Rs0.07 to close at Rs3.25. It was followed by TRG Pakistan with 25.2 million shares, losing Rs2.61 to close at Rs174.05 and Byco Petroleum with 20.9 million shares, gaining Rs0.14 to close at Rs8.93.
Foreign institutional investors were net buyers of Rs706.1 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.