PSX continues slide on rupee instability, surge in oil prices

KARACHI: The Pakistan Stock Exchange (PSX) witnessed another turbulent session on Wednesday, where the market settled yet again in the red zone, as rising oil prices and the rupee depreciation remained the prime source of concern for the participants.

An analyst at Arif Habib Limited said another range-bound session was witnessed at the bourse that again ended in the red zone after an oscillation between -114 points and +148 points, to close the session with a decline of 89 points.

“Selling pressure was evident across-the-board, barring exploration and refinery sectors, which maintained the positive momentum throughout the session. [The] E&P [exploration and production] sector; however, saw selling in the closing hour bringing [the] stock prices below [the] last closing.”

Also read: PSX remains range-bound as investors’ await outcome of FATF meeting

The Pakistan Stock Exchange KSE-100 shares index shed 0.18 per cent, or 86.44 points, to close at 47,900.7 points. The KSE-30 shares index shed 0.34 per cent, or 68 points, to close at 19,259.38 points.

As many as 420 scrips were active, of which 192 advanced, 204 declined and 24 remained unchanged. The ready market volumes stood at 619.11 million shares, compared with the turnover of 610.74 million shares in the last trading session.

Ahsan Mehanti at Arif Habib Corp said that the stocks closed lower on uncertainty over FATF announcement this week on Pakistan Action Plan in the plenary meeting, deciding on the exclusion of Pakistan from the grey list.

“[The] oil sector outperformed on surging global crude oil prices. However, investors’ concerns over the rupee instability, impact of higher industrial power tariff, and surging trade deficit played a catalytic role in the bearish close.”

An analyst at Topline Securities said after a slight positive opening, the market closed 88 points down.

“Investors’ interest was seen in [the] refinery sector, as [the] finance minister agreed to include a 10-year income tax holiday for the existing refineries in the finance bill.”

Meanwhile, fertilisers and E&Ps were the major gainers, while on the flip side, cement and the financial sector were the major laggards. Going forward, analysts expect the market direction would take a clue from the FATF decision.

The companies that reflected the highest gains included Island Textile, up Rs45 to close at Rs2,345/share; and Hinopak Motor, up Rs34.57 to close at Rs495.56/share.

The companies, which reflected the most losses included Wyeth Pakistan, down Rs64.8 to close at Rs2,220/share; and Sanofi Aventis, down Rs46.98 to end at Rs943/share.

The highest volumes were witnessed in Silk Bank with a turnover of 52.28 million shares. The scrip shed 16 paisas to close at Rs1.92/share; followed by WorldCall Telecom was the second with a turnover of 41.58 million shares. It closed at Rs3.86/share without any change. TPL Corp was the third with a turnover of 33.93 million shares. It shed Rs1.87 to finish at Rs16.21.

Also Read

Tarin seeks proposals for divesting govt shares in Mari Petroleum

KARACHI: Federal Minister for Finance and Revenue Shaukat Tarin on Wednesday directed...