Equity market continues bearish trend on rising oil prices

KARACHI: The equity market continues to witness bearish trend on Tuesday owing to escalation in the international oil prices and decline in the rupee value against the US dollar, dealers said.

“The pressure in the market was on the back of [an] increase in [the] oil prices in the international market along with the rupee depreciation. In addition to this, Pakistan’s trade deficit widened from $21.07 billion to $27.46 billion in 11MFY21,” an analyst at Pearl Securities said.

The Pakistan Stock Exchange KSE-100 shares index shed 0.05 per cent, or 25.38 points, to close at 47,987.14 points. The KSE-30 shares index shed 0.08 per cent, or 14.59 points, to close at 19,325.06 points.

[amazonad category=”Mobile”]

As many as 420 scrips were active, of which 162 advanced, 236 declined and 22 remained unchanged. The ready market volumes stood at 610.74 million shares, compared with the turnover of 839.18 million shares in the last trading session.

Maaz Mulla at JS Global Capital said that the market started off on a positive note but soon came under pressure, as it sank to a low of 47,931 points.

“Despite the bulls’ best efforts to revive the KSE-100 during the second half, the benchmark index slid again to close the session at a loss of 25 points.”

Selling pressure continued in the cement sector where Pioneer Cement declined 1.4 per cent, Cherat Cement went down 1.1 per cent, Dewan Cement fell 0.8 per cent and Flying Cement closed 1.5 per cent lower.

The bullish rally in the textile sector was fuelled by the news of healthy textile exports for May. As a result, Kohinoor Textile Mills went up 5.3 per cent, Gul Ahmed Textile gained 7.5 per cent, Nishat Chunian Limited surged 4 per cent and Nishat Mills went up 2 per cent.

Going forward, analysts expect the equity market to witness volatility due to the rollover week and recommend investors to avail of any downside as an opportunity to buy in construction and export-oriented sectors. However, the market may turn positive if Pakistan gets an exit from the Financial Action Task Force (FATF) grey list, which is to be announced soon.

The companies, which reflected the highest gains included Unilever Foods, up Rs790 to close at Rs16,500/share; and Bata Pakistan, up Rs48.95 to close at Rs1,749.95/share.

The companies that reflected the most losses included Pak Services, down Rs68.26 to close at Rs841.86/share; and Sapphire Textile, down Rs31.6 to end at Rs895/share.

The Highest volumes were witnessed in K-Electric Limited with a turnover of 37.4 million shares. The scrip sheds 7 paisas to close at Rs4.12/share; followed by Azgard Nine with a turnover of 33.37 million shares. It gained Rs2.36 to close at Rs33.96/share. TPL Corp was the third with a turnover of 30.01 million shares. It gained Rs1.05 to finish at Rs15.08.

Also Read

Weekly Review: Equity market likely to regain positive momentum next week on FATF hopes

KARACHI: The equity market is expected to regain the positive momentum next...