Pakistan equity market remains bearish; Index losses 519.36 points
KARACHI: Pakistan Stocks started the day on a positive note supported by the banking stocks, as the central bank raised the interest rate by 25bps to curtail the rising current account deficit and higher expected inflation numbers.
However, massive selling was seen in the last hours, as investors preferred to offload positions due to the pressure in the international equities over the upcoming Fed meeting and Evergrande issue created in China.
The Pakistan Stock Exchange KSE-100 shares index shed 1.21 per cent, or 519.36 points, to close at 46,008.85 points. The KSE-30 shares index shed 1.32 per cent, or 243.05 points, to close at 18,178.91 points.
As many as 519 scrips were active, of which 103 advanced, 398 declined and 18 remained unchanged. The ready market volumes stood at 325.88 million shares, compared with the turnover of 194.72 million shares in the last trading session.
Ahsan Mehanti at Arif Habib Corporation said that the stocks closed bearish on the ongoing global equity selloff and falling global crude oil prices.
“[The] SBP’s hike in key policy rate by 25bps, investors’ concerns on foreign outflows, rising current account deficit and [the] circular debt played a catalytic role in the bearish close.”
An analyst at Arif Habib Limited said the market posted an increase of 305 points during the session early on; however, it lost that gain and by the end of the session lost a total of 1,055 points, including the erosion of 305 points earned earlier.
“Selling was witnessed across-the-board, with heavy implication on technology and cement sectors.”
“Despite low leverage level in the market in DFC, MTS and MFS segments, [the] index melted due to calls of redemption at mutual funds. Regardless of the steep decline in the index, [the] overall trading volumes remained low comparative to the hay days seen in [the] outgoing fiscal.”
The companies, which reflected the highest gains included Nestle Pakistan, up Rs104.99 to close at Rs5,910/share; and Colgate Palmolive, up Rs10.10 to close at Rs2,438.08/share.
The companies that reflected the most losses included Pakistan Tobacco, down Rs41 to close at Rs1,155/share; and Gatron Industries, down Rs32.99 to close at Rs480/share.
The highest volumes were witnessed in Telecard Limited with a turnover of 28.1 million shares. The scrip gained five paisas to close at Rs22.06/share; followed by WorldCall Telecom with a turnover of 26.43 million shares. It shed eight paisas to close at Rs3.11/share. TPL Corp remained the third with a turnover of 21.43 million shares. It gained 65 paisas to finish at Rs24.98.
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