Market watch: Geopolitical turmoil takes toll on bourse

Benchmark KSE-100 index sheds 313.02 points to settle at 45,362.85

KARACHI:

Pakistan Stock Exchange witnessed a dreary session on Monday, as the benchmark KSE-100 index lingered in negative territory for most of the day and finally closed lower by 313 points.

Taking cue from the bearish global equities due to prevailing tensions between Russia and Ukraine, Pakistan’s bourse remained under pressure and market players opted to stay on the sidelines.

Even fresh appreciation of the rupee against the US dollar failed to entice investors.

Despite starting the session on a positive note, the KSE-100 index failed to maintain the bullish momentum and started falling at a steady pace.

The index, after remaining in red zone throughout the day, touched an intra-day low of 45,342 points just before the closing hour. However, stock buying in the final hour helped the index to recover slightly.

At close, the benchmark KSE-100 index recorded a decrease of 313.02 points, or 0.69%, to settle at 45,362.85 points.

In its report, Arif Habib Limited stated that the Pakistan Stock Exchange witnessed another sluggish day, as the market opened positive but could not remain in the green zone.

Main reasons behind the dull market were political noise in the country, start of futures rollover week and a meeting of the Financial Action Task Force (FATF), it said.

The market witnessed many important financial result announcements which included Nishat Chunian, Nishat Mills, Fauji Cement, Hi-Tech Lubricants and Meezan Bank, which were in line with market expectations.

Sectors contributing to the performance included banks (-65 points), cement (-45 points), exploration and production (-37 points), technology (-31 points) and power (-25 points).

Topline Securities, in its report, said that Pakistan equities started the week with lacklustre activity.

Banking, technology, cement and exploration and production sectors saw some selling pressure where Meezan Bank, TRG Pakistan, Lucky Cement and Mari Petroleum contributed negatively as they lost 97 points.

On the flip side, Bank AL Habib, Dolmen City REIT and Fatima Fertiliser added a cumulative 20 points, it said.

“Among corporate announcements, Meezan Bank declared better-than-expected 2021 results, where the bank posted earnings per share of Rs17.35, an improvement of 26% year-on-year, along with final cash dividend of Rs1.50, making total cash payout of Rs6 for the calendar year,” the report said.

Nishat Mills also declared its first half 2021-22 accounts where earnings per share came in at Rs15.9, an improvement of 216% year-on-year, it added. “The company did not announce any payout with the result.”

JS Global analyst Waqar Iqbal said that the KSE-100 index experienced a lacklustre session due to the lack of triggers.

WorldCall Telecom, Hum Network, K-Electric, Sui Northern Gas Pipelines and The Bank of Punjab were the volume leaders.

“Going forward, we expect the market to remain range bound due to the geopolitical situation and the rollover week,” the analyst said.

Overall trading volumes dropped to 137.7 million shares compared with Friday’s tally of 194.1 million. The value of shares traded during the day was Rs3.6 billion.

Shares of 339 companies were traded. At the end of the day, 95 stocks closed higher, 225 declined and 19 remained unchanged.

WorldCall Telecom was the volume leader with 19.1 million shares, losing Rs0.09 to close at Rs1.85. It was followed by Hum Network with 11.3 million shares, gaining Rs0.17 to close at Rs7.62 and K-Electric with 8.9 million shares, losing Rs0.18 to close at Rs3.30.

Foreign institutional investors were net buyers of Rs21.4 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.