PSX remains bearish amid profit-taking

KARACHI: The Pakistan stocks observed a profit-taking session, as the global markets turned red on Tuesday, amid concerns over the rapid spread of the Omicron virus globally, dealers said.

“On the local front, the current account deficit [has been] reported at $1.9 billion in November 2021 [to reach] $7 billion for [the] 5MFY22 [five months of FY22]. Similarly, selling pressure was seen in the late hours, dragging the index to close in the red,” an analyst at Pearl Securities said.

The Pakistan Stock Exchange KSE-100 shares Index shed 0.37 percent, or 162.88 points, to close at 44,177.07 points. The KSE-30 shares index lost 0.57 percent, or 100.06 points, to close at 17,387.27 points.

As many as 346 scrips were active, of which 145 advanced, 171 declined and 30 remained unchanged. The ready market volumes stood at 223.08 million shares, compared with the turnover of 238.45 million shares in the last trading session.

Ahsan Mehanti at Arif Habib Corporation said that the stocks closed lower in the overbought market on the concerns for the SBP’s policy tightening and $7.1 billion current account deficit, surging to 5.3 percent of GDP.

“Likely FM [finance minister] announcements of mini-budget with new taxes ahead of the resumption of IMF program and slump in the global crude oil prices played a catalytic role in the bearish close.”

Going forward, analysts recommend investors adopt a buy on dip strategy, primarily in oil and gas exploration, oil marketing, and cyclical sector stocks.

The companies, which reflected the highest gains included Colgate Palmolive, up Rs64.75 to close at Rs2525/share; and Sanofi Aventis, up Rs42.48 to close at Rs610.83/share.

The companies that reflected the most losses included Nestle Pakistan, down Rs61 to close at Rs5,389/share; and Mari Petroleum, down Rs14.88 to close at Rs1678.62/share.

The highest volumes were witnessed in WorldCall Telecom with a turnover of 21.71 million shares. The scrip shed seven paisas to close at Rs2.12/share; followed by TRG Pakistan with a turnover of 20.92 million shares. It gained Rs1.83 to close at Rs116.24/share. Cynergico Pk remained the third with a turnover of 18.72 million shares. It gained 36 paisas to finish at Rs6.53/share.