Pakistan equity market remains bearish amid profit-taking

Web DeskWeb Editor

01st Sep, 2021. 07:50 pm
PSX turns around, gains 135 points to close at 47,137 points

KARACHI: Pakistan equity market opened on a positive note on Wednesday but succumbed to profit-taking, as the Pakistan Bureau of Statistics (PBS) notified CPI inflation at 8.4 per cent in August 2021, dealers said.

Ahsan Mehanti at Arif Habib Corp said that the stocks closed flat, amid CPI inflation at 8.4 per cent in August 2021 and weak economic outlook.

“Uncertainty regarding the MSCI decision over the PSX emerging market status next week and concerns over foreign outflows, weakening the rupee played a catalytic role in the negative close.”

The Pakistan Stock Exchange KSE-100 shares index shed 0.01 per cent, or 6.28 points, to close at 47,413.46 points. The KSE-30 shares index gained 0.01 per cent, or 1.4 points, to close at 19,029.27 points.

As many as 534 scrips were active, of which 307 advanced, 207 declined and 20 remained unchanged. The ready market volumes stood at 536.64 million shares, compared with the turnover of 378.83 million shares in the last trading session.

An analyst at Arif Habib Limited said the first day of the month saw range-bound activity with sideboard scrips performing better than the blue chips.

“The index swayed +209 points and -65 points, closing the session -7 points. Banks, cement, fertiliser, power and refinery sectors ended the session in the red, whereas technology sector led the index.”

The country’s exports surged 43 per cent to $2.25 billion in August, while the Federal Board of Revenue’s (FBRcollection surged 45 per cent to Rs434 billion in August.

“Moreover, stocks of steel producers saw renewed investors’ interest after flat steel manufacturers increased steel products prices by Rs5,000/tonne. Resultantly, International Steel Limited (ISL) and Amreli Steel Limited (ASL) closed the day with a gain of 2.2 per cent and 0.51 per cent, respectively,” Haris Saeed at Topline Securities said.

“Going forward, we expect the market to swing both ways; therefore, we suggest investors to adopt the buy on dip strategy in the ongoing week,” an analyst at Pearl Securities said.

The companies, which reflected the highest gains included Unilever Foods, up Rs1,359.22 to close at Rs20,208.22/share; and Nestle Pakistan, up Rs85 to close at Rs5,650/share.

The companies that reflected the most losses included Rafhan Maize, down Rs299 to close at Rs10,200/share and Wyeth Pakistan, down Rs52.12 to end at Rs1,772/share.

The highest volumes were witnessed in WorldCall Telecom with a turnover of 162.28 million shares. The scrip gained 34 paisas to close at Rs3.56/share; followed by Telecard Limited with a turnover of 45.13 million shares. It gained Rs1.37 to close at Rs20.83/share. Ghani Global remained the third with a turnover of 32.73 million shares. It gained Rs3.22 to finish at Rs46.2.

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