Stocks on Monday went into a tailspin hitting a 6-month low after massive foreign exits with investors on tenterhooks over soaring energy and power prices seen fanning inflationary fires down the line, traders said.
After testing a day high of 44,541.97 points and a low of 43,720.83, Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Share Index settled at 43,829.35 points after losing 647.89 points or 1.46 percent.
Ahsan Mehanti, an analyst at Arif Habib Corp, said stocks fell across the board on foreign outflows, and concerns over higher inflation, surging trade deficit and bond yields. Falling rupee parity and uncertainty over the outcome of Pakistan-IMF (International Monetary Fund) talks under EFF (Extended Fund Facility) programme and dismal cement sales, down 6 percent in July-September 2021 played the sentiment down, Mehanti said.
Tracking the benchmark, KSE-30 Shares Index also shed 295.25 points or 1.68 percent to end at 17,229.55 points. Brokerage Topline Securities in a post-market note said equities commenced the week with a declining trend.
To note, TRG dented the index by 118.55 points as investors digested the news of a global tax deal seeking to end safe-havens, the brokerage added. Furthermore, SYS, LUCK, FFC, UNITY, and MLCF further dragged the index lower by 165.44 points.
On the contrary, the brokerage said energy stocks rose as international oil prices topped $80 resulting in the exploration and production sector closing the day up by 0.29 percent. Volumes continued to remain depressed with the total traded volume and value clocking in at 226.49 million shares and Rs8.27 billion respectively.
Out of 548 active stocks in the session, only 61 posted gains, 470 losses, while 17 ended unchanged. Colgate PalmXB was the best gainer of the day, rising Rs52 to Rs2,500/share, followed by Gatron Industries that jumped Rs36 to Rs516/share.
Nestle Pakistan was the most beaten up stock as it fell Rs196.50 to Rs5,805/share, followed by Systems Limited, down Rs35 to end at Rs690.61/share. Brokerage Arif Habib Limited in its market review said stocks tumbled again on concerns over high energy and commodity prices as well as prospects of further electricity tariff hikes that can lead to erosion of purchasing power and an economic contraction.
Foreigners continued selling stocks unabated that brought the index down by 759 points during the session and closed the session with a loss of 648 points, the brokerage said. It added that an increase in international oil prices failed to have a material impact on the stock prices of energy stocks. Selling pressure was witnessed across the board, however, technology, cement, oil and gas marketing companies contributed to a downward trend, the brokerage said. JS Global in its market wrap said the benchmark index took a battering amid lack of major positive triggers.
“Investors are advised to stay cautious and build exposures across the board on major dips keeping medium term horizon in mind,” the brokerage said. WorldCall Telecom remained the volume leader with 41.36 million shares, followed by Telecard Limited that posted a trade of 13.89 million shares.
Stocks that recorded significant turnover included Treet Corp, Hum Network, TRG Pak Ltd, TPL Corp Ltd, Unity Foods Ltd, Byco Petroleum, Ghani Glo Hol, and Engro Fertilisers. Turnover in the future contracts increased to 97.32 million shares from 62.34 million on the last trading session.