Pakistan equity markets remains bearish amid rollover week

KARACHI: Pakistan stocks witnessed another bearish session, amid rollover week and the spread of Covid, as Pakistan has reported highest active cases since April 29, 2021. Additionally, the rupee fell to an 11-month low against the dollar, which further created the uncertainty at the bourse.

An analyst at Arif Habib Limited said the market saw continued selling pressure, which was partly due to the ongoing rollover activity and partly the profit-booking in cement, fertiliser, technology and oil and gas chain.

“[The] oil and gas marketing sector faced selling pressure in PSO [Pakistan State Oil], which persisted since yesterday when the company disclosed its financial results to the dismay of investors. [The] activity remained lacklustre and the index lost a total of 211 points after recording a gain of 88 points. Among engineering sector stocks, International Steel Limited (ISL) declared a hefty dividend, besides significant earnings, with the stock contributing to high traded value and an uptick.”

The Pakistan Stock Exchange KSE-100 shares index shed 0.4 per cent, or 192.81 points, to close at 47,635.9 points. The KSE-30 shares index shed 0.4 per cent, or 75.89 points, to close at 19,090.13 points.

As many as 479 scrips were active, of which 177 advanced, 282 declined and 20 remained unchanged. The ready market volumes stood at 384.62 million shares, compared with the turnover of 394.95 million shares in the last trading session.

Neelam Naz at JS Global Capital said that the benchmark index shed 193 points, as it closed at the level of 47,636. “Habib Metro Bank (HMB) announced its second quarter of CY21 results, reporting consolidated earnings of Rs2.89/share and a dividend payout of Rs2/share.”

“Going forward, the market looks attractive and a buy on dips strategy is advised in cement, steel, textiles and oil and gas exploration sectors, keeping a medium-term outlook in mind.”

The companies, which reflected the highest gains included Wyeth Pakistan, up Rs82.24 to close at Rs1,781.29/share; and Allawasaya Textile, up Rs39.49 to close at Rs566.11/share.

The companies that reflected the most losses included Pakistan Services, down Rs70 to close at Rs1,005/share; and Sapphire Fiber, down Rs59.01 to end at Rs806/share.

The highest volumes were witnessed in WorldCall Telecom with a turnover of 38.04 million shares. The scrip gained one paisa to close at Rs3.32/share; followed by Azgard Nine with a turnover of 33.35 million shares. It gained 45 paisas to close at Rs28.17/share. Ghani Global was the third with a turnover of 22.05 million shares. It shed Rs2.55 to finish at Rs48.27.