Stocks end down in volatile day; IMF a drag

 
October 19, 2021

Stocks ended lower on Monday after a volatile session as signs of a slow progress toward an International Monetary Fund loan tranche dented the market sentiment, dealers said.The Pakistan Stock...

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Stocks ended lower on Monday after a volatile session as signs of a slow progress toward an International Monetary Fund loan tranche dented the market sentiment, dealers said.

The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index fell 192.08 points or 0.43 percent to close at 44,629.45 points against 44,821.53 points recorded in the last session.

The highest index of the day remained at 44,993.66 points while the lowest level of the day was recorded at 44,432.32 points. KSE-30 index also shed 65.93 points or 0.38 percent to close at 17,455.54 points against 17,521.47 points.

Traded shares decreased by 86 million shares to 248.29 million shares from 334.32 million shares. The trading value dropped to Rs8.81 billion from Rs11.79 billion. Market capital fell to Rs7.765 trillion from Rs7.794 trillion. Out of 330 companies active in the session, 110 posted gains, 209 losses while 11 remained neutral.

Analyst Ahsan Mehanti at Arif Habib Corp said stocks fell across the board on uncertainty over the outcome of Pakistan- IMF talks and a slump in rupee value. Mid-session support was witnessed on surging global crude oil prices but economic uncertainty, surging trade deficit, and ongoing political noise kept the market under pressure, Mehanti said.

Analyst Haris Khan at Topline Securities said the benchmark index opened the week with a volatile session as a hike in petroleum prices coupled with a delay in the IMF negotiations for the resumption of the EFF dampened investor sentiments.

“However, the E&P sector saw renewed investor interest after the international oil prices hit their highest level in years, with Brent trading at $85.97/barrel,” Khan said. “OGDC, PPL, & POL cumulatively added 78.55 points to the benchmark index.”

Moreover, the commercial banks' sector also continued to witness buoyant buying throughout the day as investors braced themselves for an interest rate hike in the near term owing to high inflation expectations while the sector on average closed the day up 0.47 percent.

The highest increase was recorded in shares of Sapphire Tex.XD, which rose by Rs39.55 to Rs1,129/share, followed by Wyeth Pak Ltd that increased by Rs32.24 to Rs1,629.99/share. A major decline was noted in shares of Colgate PalmXB, which fell by Rs48.33 to Rs2,450/share, followed by Pak Systems Limited that decreased by Rs24.37 to Rs665.04/share.

On the results front, EPCL announced its 3Q2021 EPS of 3.42 accompanied by a cash dividend of Rs3/share, after which the stock closed the day 57.88, up 1.05 percent.

Hum Network remained the volume leader with 25.09 million shares with an increase of 18 paisas to Rs6.14/share. It was followed by WorldCall Telecom with 20.83 million shares that closed lower by 11 paisas to Rs2.28/share.

Stocks that recorded significant turnover included Hascol Petrol, Unity Foods Ltd, Dost Steels Ltd., Service Fabrics, Telecard Limited, B.O.Punjab, Byco Petroleum, and TRG Pak Ltd. Shares’ turnover in the future contracts decreased to 66.06 million shares from 96.08 million shares.



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