Stocks remain bearish over fears of increase in energy prices

Javed MirzaWeb Editor

21st Jun, 2021. 06:13 pm

KARACHI: The Pakistan Stock Exchange (PSX) traded in a narrow range on Monday, as uncertainty prevailed over the likely increase in oil prices, giving rise to inflation, as well as the increase in the rupee-dollar parity, which pushed the investors to take a cautious approach, dealers said.

Ahsan Mehanti at Arif Habib Corp said that the stocks fell sharply lower, amid slump in the global equities, consolidation in the post-budget session and reports of the Pakistan-IMF deadlock over the 6th review under the Extended Finance Facility.

“Investors’ concern over hike in [the] power tariff and political uncertainty played a catalytic role in the bearish close.”
The Pakistan Stock Exchange KSE-100 shares index shed 0.47 per cent, or 226.15 points, to close at 48,012.52 points. The KSE-30 shares index shed 0.44 per cent, or 86 points, to close at 19,339.65 points.

As many as 411 scrips were active, of which 163 advanced, 233 declined and 15 remained unchanged. The ready market volumes stood at 839.18 million shares, compared with the turnover of 750.56 million shares in the last trading session.
An analyst at Topline Securities said the equities witnessed a range-bound session.

Also read: Rupee falls 62 paisas against dollar

“The start of the futures roll-over week, with an open position of Rs28.9 billion, coupled with the ongoing FATF meeting, kept the market in check.”

Despite an increase in the cement price/bag in the outgoing week, cement and steel sector stocks were down. Though oil prices have maintained stable ground, the exploration and petroleum (E&P) sector remained under selling pressure.

An analyst at Pearl Securities said the KSE-100 index started the roll-over week with a bearish momentum and closed in the red territory. “The downward pressure was observed majorly on the back of disturbed relationships between Pakistan and [the] US and [the] ongoing talks with the IMF to eliminate the global lender’s concern over the Financial Bill 2021/22.”

On the flip side, the FATF plenary meeting has started and the decision over Pakistan’s exclusion from the grey list is expected during the week. Moreover, Saudi Arabia will resume its oil facility in Pakistan, amounting to $1.5 billion/annum, facilitating the country’s external account position. Going forward, analysts expect the market to remain bullish post-Pakistan’s exit from the FATF grey list.
Meanwhile, the companies that reflected the highest gains included Sanofi Aventis, up Rs63.98 to close at Rs989.98/share; and Bhanero Textile, up Rs59 to close at Rs1,059/share.

The companies, which reflected the most losses included Unilever Foods, down Rs840 to close at Rs15,710/share; and Colgate Palmolive, down Rs98 to end at Rs2,700/share.

The highest volumes were witnessed in Silkbank Limited with a turnover of 235.10 million shares. The scrip gained 31 paisas to close at Rs2.14/share; followed by Hum Network with a turnover of 60.35 million shares. It sheds 25 paisas to close at Rs8.87/share. WorldCall Telecom was the third with a turnover of 58.45 million shares. It sheds 12 paisas to finish at Rs4/share.

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