KARACHI: Pakistan’s foreign exchange reserves slipped $197 million to $20.521 billion in the week ended March 18, from $20.718 billion in the preceding week, the central bank said on Thursday.
The State Bank of Pakistan (SBP) said its reserves decreased $229 million to $15.63 billion from $15.859 billion. The SBP attributed the decrease mainly to payment of $223 million on account of external debt servicing.
The reserves held by banks, however, increased $32 million to $4.891 billion as compared to $4.859 billion.
ex ) ie`points, or 0.38 percent, to close at 32,801.88 points.
It was the third straight negative session. The cumulative losses of these sessions stand at 278.52 points, or 0.84 percent.
KSE 30-share Index dropped 101.64 points, or 0.53 percent, to end at 19,086.58 points.
Volumes decreased 35 percent to 86.36 million shares. Trading value fell 27 percent to Rs4.62 billion. The market capitalisation declined Rs33 billion to Rs6.78 trillion. Of the total 323 active stocks, 179 closed down, 121 ended up and 23 remained unchanged.
Oil and Gas Development Company lost two percent. Index heavyweight Habib Bank fell 0.81 percent and MCB Bank lowered 0.95 percent.
“(We) expect recent dull performance to continue with benchmark index trading in a range near the current levels,” said Ali Raza, an analyst at Elixir Securities.
Topline Securities said earnings of banks are expected to remain under pressure in 2016 with an expected fall in capital gains and reinvestment risk once high yielding Pakistan Investment Bonds mature. “We anticipate our sample banks to report six percent decline in earnings in 2016 unless banks book abnormal capital gains,” it said in a report.
KASB Securities said the recent rally lost steam after inventory remained on much higher side than estimated. “Besides, a stronger dollar also contributed towards declines,” the brokerage house said in a report.
As downward trend continued, auto stocks, like Pak Suzuki, Honda Cars and Indus Motor declined between 0.5 percent and 1.75 percent.
Raza said most investors were on the sidelines. “Turnover was the lowest in the last 10 months as only $32 million worth of shares traded,” Raza said. “Stocks traded in a narrow range as investors tracked subdued regional markets while rollover week and lack of clarity on foreign flows also contributed to a lackluster session.”
Mehanti added pressure remained in scrips across the board amid concerns for dismal economic data on exports. Weak banking spreads and falling fertiliser prices played a catalyst role in the bearish close. Dewan Motors was the volume leader with 7.78 million shares as it closed at Rs9.89. This was followed by TRG Pakistan with 7.30 million shares. The share value ended at Rs27.35. Fatima Fertilizer recorded trade in 4.84 million shares, as it closed at Rs31.89.