PSX closes below psychological barrier of 45,000 points on oil price hike
KARACHI: The Pakistan stocks witnessed selling pressure and closed below the psychological barrier of 45,000 points, owing to the higher international oil prices, as Opec remains reluctant to increase supply, which will further pressurise the economic activities, dealers said on Tuesday.
Ahsan Mehanti at Arif Habib Corporation said that the stocks closed lower on global equity selloff and investors’ concerns over the reports of over 100 per cent surge in trade deficit in the first quarter of the current fiscal year.
“Dismal data on cement sales, surge in the industrial power tariff, weak rupee and over-leveraging played a catalytic role in the bearish close.”
The Pakistan Stock Exchange KSE-100 shares index shed 0.84 per cent, or 377.93 points, to close at 44,666.57 points. The KSE-30 shares index shed 0.8 per cent, or 140.87 points, to close at 17,543.15 points.
As many as 564 scrips were active, of which 211 advanced, 342 declined and 11 remained unchanged. The ready market volumes stood at 334.68 million shares, compared with the turnover of 267.2 million shares in the last trading session.
An analyst at Arif Habib Limited said the market lost further ground on Tuesday. “Discussions with [the] IMF are still ongoing with the hope of [the] near-term resolution and resumption of [the] IMF programme. Besides concerns over the IMF programme, continued pressure on the rupee/dollar parity has also caused concerns among the investors, especially foreigners who have lately started selling equities.”
Among technology stocks, Octopus hit the upper circuit, whereas other tech stocks remained under pressure, especially TRG Pakistan, which saw selling pressure, despite anticipation of high earnings.
An analyst at Pearl Securities said Pakistan’s trade deficit surged 101 per cent to $11.7 billion in the first quarter of FY22. Similarly, the cement dispatches declined 5.6 per cent, amid higher input and freight cost.
“Meanwhile, Pak-IMF discussion has started, which will remain the center of attention in the coming weeks.”
“Going forward, we expect the market to remain volatile; hence, we suggest our investors [to] adopt a sell on strength strategy during the ongoing week.”
The companies that reflected the highest gains included Mari Petroleum, up Rs116.79 to close at Rs1,681.36/share; and Pakistan Services, up Rs26.24 to close at Rs1,496.24/share.
The companies, which reflected the most losses included Sapphire Textile, down Rs71.25 to close at Rs900/share; and Gatron Industries, down Rs35 to close at Rs435/share.
The highest volumes were witnessed in Telecard Limited with a turnover of 30.36 million shares. The scrip gained 76 paisas to close at Rs19.95/share; followed by Azgard Nine with a turnover of 19.55 million shares. It shed Rs1.27 to close at Rs20.12/share. Ghani Global remained the third with a turnover of 18.57 million shares. It gained Rs1.62 to finish at Rs39.43.
Engro Fertilizers recognised as sector’s largest taxpayer
KARACHI: Engro Fertilizers, Pakistan’s premier seed-to-harvest solutions provider, has been recognised as...
Unisame seeks SBP permission for overseas merchanting business
KARACHI: The Union of Small and Medium Enterprises (Unisame) has urged the...
Sri Lanka bans contaminated Chinese fertiliser
COLOMBO: Sri Lanka has barred a Chinese ship carrying desperately needed organic fertiliser...
Rupee continues free-fall against dollar
KARACHI: The rupee continued to decline against the dollar on Monday, as...
Auto companies anticipate low earnings due to currency devaluation
KARACHI: The auto companies’ earnings growth is expected to remain slow on...