29.8 C
New York
Wednesday, July 6, 2022

Buy now


Stocks drop again in absence of positivity


The Pakistan Stock Exchange witnessed another dull trading session on Friday, as the benchmark KSE-100 index declined by around 100 points to close the fifth consecutive session in the red.

Bears took complete control over the bourse throughout the outgoing week mainly owing to the absence of positive triggers.

Despite fresh appreciation of the rupee against the US dollar in the inter-bank market, investor sentiment remained dismal mainly owing to speculation about the fate of International Monetary Fund (IMF) loan programme, which discouraged investors from taking fresh positions.

Earlier, the session commenced on a positive note as the benchmark KSE-100 index rallied and touched intra-day high of 45,775 points during the initial hour of trading.

However, the index began to lose shine soon after as it treaded south due to profit-taking and just before midday it plunged to intra-day low of 45,505 points.

A brief buying activity in the final hour helped the index recoup some of the losses, but it closed the week in the negative territory.

At close, the benchmark KSE-100 index recorded a decrease of 99.6 points, or 0.22%, to settle at 45,553.02 points.

Topline Securities, in its report, said that lacklustre activity was observed at the bourse as the index traded between intra-day high of 122 points and intra-day low of -148 points to finally close at 45,553.

“Pakistan Services Limited, Kot Addu Power Company, Colgate-Palmolive (Pakistan) Limited, Pakistan Tobacco Company and Dawood Hercules Corporation lost value and dragged the index down by 139 points cumulatively,” Topline said.

A report of Arif Habib Limited stated that a range-bound session was observed at the Pakistan Stock Exchange due to the prevailing pressure on Pakistani rupee against the US dollar and concerns over a spike in T-bill yields.

The market opened in the green zone but failed to sustain the positive trend as profit-selling was witnessed in the main board, it said, adding that the session remained dull, although third-tier stocks continued their positive momentum.

“Sectors contributing to the performance included miscellaneous (-66.8 points), chemical (-30.5 points), fertiliser (-25.9 points), banks (-24.8 points) and power (-21.2 points).”

JS Global analyst Neelam Naz said that the KSE-100 index closed at 45,553 points, down 100 points day-on-day.

Cnergyico PK (+2.5%), Hum Network (+4.9%), Lotte Chemical (-3.9%), TPL Properties (-0.8%) and Ghani Global Holdings (+7.5%) were the volume leaders, she said.

Major index laggards were Pakistan Services Limited, Kot Addu Power Company, Colgate-Palmolive (Pakistan) Limited, Pakistan Tobacco Company and Engro Fertilisers.

“Going forward, we recommend investors to avail the ongoing correction as a buying opportunity with focus on refineries, oil and gas and banking sectors,” the analyst said.

Overall trading volumes increased to 217.6 million shares compared with Thursday’s tally of 186.4 million. The value of shares traded during the day was Rs5.3 billion.

Shares of 316 companies were traded. At the end of the day, 162 stocks closed higher, 132 declined and 22 remained unchanged.

Cnergyico PK was the volume leader with 23.65 million shares, gaining Rs0.16 to close at Rs6.66. It was followed by Hum Network with 23.6 million shares, gaining Rs0.38 to close at Rs8.21 and Lotte Chemical with 19.6 million shares, losing Rs0.77 to close at Rs19.01.

Foreign institutional investors were net sellers of Rs124.4 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.

Related Articles


Please enter your comment!
Please enter your name here

Stay Connected

- Advertisement -spot_img

Latest Articles