Pakistan stocks remain bearish on massive selling
KARACHI: The Pakistan stocks started the first day of the week on a positive note, gaining 163 points during the initial trading hour; however, massive selling was again witnessed at the bourse leading to an abnormal decline of 732 points, dealers said on Monday.
“The investors remained focused towards the economic numbers and higher commodity prices where dollar at interbank surged 52 paisas to close at 169.60 and Brent crude oil heading towards $80/bbl, which may escalate inflation, going forward,” an analyst at Pearl Securities said.
The Pakistan Stock Exchange KSE-100 shares index shed 0.57 per cent, or 255.76 points, to close at 44,817.76 points. The KSE-30 shares index shed 0.56 per cent, or 100.19 points, to close at 17,742.17 points.
As many as 547 scrips were active, of which 143 advanced, 382 declined and 22 remained unchanged. The ready market volumes stood at 301.39 million shares, compared with the turnover of 369.53 million shares in the last trading session.
Ahsan Mehanti at Arif Habib Corporation said that the stocks fell sharply on the reports of foreign selling and concerns over the ongoing economic uncertainty.
“Falling rupee, and surging government bond yields played a catalytic role in the bearish close.”
An analyst at Arif Habib Limited said the market posted gains of 163 points earlier in the session, but faced the onslaught sooner, which caused erosion of these gains.
“Leveraged positions mostly got thrashing; however, the resumption of rupee slippage was another reason cited for the panic selling in the market.”
An analyst at JS Global Capital said the downtrend continued on Monday, as selling pressure was witnessed across-the-board. “Going forward, we recommend investors to adopt a buy-on-dip strategy in banking, steel and textile sectors.”
The companies, which reflected the highest gains included Bhanero Textile, up Rs82.23 to close at Rs1,178.73/share; and Colgate Palmolive, up Rs35.15 to close at Rs2,480/share.
The companies that reflected the most losses included Unilever Foods, down Rs1,635 to close at Rs20,165/share; and Rafhan Maize, down Rs149.5 to close at Rs10,500/share.
The highest volumes were witnessed in WorldCall Telecom with a turnover of 32.64 million shares. The scrip shed 11 paisas to close at Rs2.76/share; followed by Byco Petroleum with a turnover of 32.16 million shares. It shed 55 paisas to close at Rs7.01/share. Hum Network remained the third with a turnover of 10.10 million shares. It gained 13 paisas to finish at Rs5.90.
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