Pakistan stocks remain bearish as index losses 284 points

KARACHI: Pakistan stocks witnessed selling pressure on Friday, as the investors remained uncertain regarding the monetary policy announcement next week, amid rising trade deficit and declining rupee, dealers said.

Ahsan Mehanti at Arif Habib Corporation said that the stocks closed lower on speculation over the State Bank of Pakistan’s (SBP) policy rate announcement next week and investors’ concerns on foreign outflows.

“Rising current account deficit to $1.476 billion in August 2021, weak global crude oil prices, and uncertainty over the rupee parity played a catalytic role in the bearish close.”

The Pakistan Stock Exchange KSE-100 shares index shed 0.61 per cent, or 284.38 points, to close at 46,636.08 points. The KSE-30 shares index shed 0.95 per cent, or 177.85 points, to close at 18,480.32 points.

As many as 525 scrips were active, of which 173 advanced, 327 declined and 25 remained unchanged. The ready market volumes stood at 387.29 million shares, compared with the turnover of 405.17 million shares in the last trading session.

An analyst at JS Global Capital said the KSE-100 witnessed a volatile session with a high and low of +261 points and -365 points, respectively, to close at the level of 46,636 points.

“Selling pressure was seen in the market due to rebalancing of the FTSE Index. Millat Tractors Limited (MTL), up 2.3 per cent, declared its FY21 results, where the company posted an EPS of Rs117.13 along with a cash dividend of Rs50/share and a bonus of 20 per cent.”

From the steel sector, Mughal Steel declared its FY21 results, posting an EPS of Rs12.85 and a bonus of 15 per cent.

Selling pressure was witnessed in the technology sector where Avanceon Limited, down 3.5 per cent; Telecard Limited, down 3.1 per cent, Netsol, down 2.8 per cent and TRG Pakistan, down 1.5 per cent, lost value to close in the negative territory.

Going forward, analysts recommend investors to book profits and wait for further buying.

The companies, which reflected the highest gains included Gatron Industries, up Rs36.32 to close at Rs527.5/share; and Ismail Industries, up Rs29.01 to close at Rs449/share.

The companies that reflected the most losses included Nestle Pakistan, down Rs77 to close at Rs5,910/share; and Rafhan Maize, down Rs200 to close at Rs10,800/share.

The highest volumes were witnessed in WorldCall Telecom with a turnover of 42.41 million shares. The scrip shed seven paisas to close at Rs3.25/share; followed by TRG Pakistan with a turnover of 25.23 million shares. It shed Rs2.61 to close at Rs174.05/share. Byco Petroleum remained the third with a turnover of 20.91 million shares. It gained 14 paisas to finish at Rs8.93.