Pakistan bourse fails to sustain 48,000 level on profit-taking

Web DeskWeb Editor

24th Aug, 2021. 07:40 pm
Pakistan stocks

KARACHI: The Pakistan bourse witnessed profit-taking on Tuesday, and the KSE-100 Index failed to sustain the 48,000 level due to the rollover week and the key results announced by the Pakistan State Oil (PSO) and Engro turned out to be short of expectations, dealers said.

Ahsan Mehanti at Arif Habib Corp said that the stocks closed bearish, amid institutional profit-taking in the overbought scrips.

“Foreign outflows, slump in the rupee value, regional uncertainty and concerns over the PSX likely to downgrade to MSCI Frontier status next month played a catalytic role in the bearish close.”

The Pakistan Stock Exchange KSE-100 shares index shed 0.59 per cent, or 286.5 points, to close at 47,828.71 points. The KSE-30 shares index shed 0.89 per cent, or 171.43 points, to close at 19,166.02 points.

As many as 483 scrips were active, of which 171 advanced, 297 declined and 15 remained unchanged. The ready market volumes stood at 394.95 million shares, compared with the turnover of 397.69 million shares in the last trading session.

An analyst at Arif Habib Limited said after posting an increase in the last three consecutive sessions, the index saw across-the-board profit-booking, with the Pakistan State Oil being the prominent one due to lower-than-anticipated payout, despite high earnings.

“Similarly, cement, steel and E&P sectors saw selling activity, which kept the index under pressure. The technology sector showed mixed reaction with Avanceon, Netsol Technologies and Systems Limited floating above the last closing price.”

An analyst at Pearl Securities said Pakistan received $2.75 billion, as the IMF announced additional funding of $650 billion across the globe. However, the rupee is still under pressure as the dollar reached the level of 165 after September 30, 2020.

“Going forward, we expect the market to move both ways; hence, we recommend our investors to adopt the “Buy on Dip” strategy in the ongoing week.”

The companies that reflected the highest gains included Pakistan Services, up Rs75 to close at Rs1,075/share; and Philip Morris Pakistan, up Rs44.99 to close at Rs974.99/share.

The companies, which reflected the most losses included Sapphire Fiber, down Rs34.99 to close at Rs865.01/share; and Pakistan Tobacco, down Rs27.51 to end at Rs1,186/share.

The highest volumes were witnessed in WorldCall Telecom with a turnover of 43.69 million shares. The scrip shed 3 paisas to close at Rs3.31/share; followed by Telecard Limited with a turnover of 30.99 million shares. It gained 55 paisas to close at Rs17.88/share. Ghani Global remained the third with a turnover of 25.68 million shares. It gained 63 paisas to finish at Rs48.27.

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