Stocks weaken as rollover adjustments weigh

Stocks on Friday snapped out of a multi-session run-up, owing to heavy rollover adjustments driven profit-selling, amid retreating global markets and an alarming coronavirus situation in the country, dealers said.

The KSE-100 shares index, the benchmark of the Pakistan Stock Exchange, lost 0.55 percent or 223.94 points to close at 40,807.09 points, while volumes increased to 397.792 million shares, compared to 389.193 million on Thursday. KSE-30

index also shed 0.78 percent or 134.97 points to end at 17,159.82 points.

Salman Ahmad, head of institutional sales at Aba Ali Habib Securities, said Friday was the last session of rollover week and some large adjustments whipped the index before the close.

Sliding international crude oil prices and sharp rise in COVID-19 cases put brakes on fresh investment, he said.

“With smooth settlement of roll over week, there is a possibility the index might recover some losses next week, but much depends on the inflation numbers,” Ahmad added.

A A Soomro, managing director at KASB Securities, said the index revolved around flattish levels with oil, cements, and autos closing negative; however, strong interest was seen in technology, Unity, and refinery stocks.

“The market's mood on Monday is contingent upon the news flow over the weekend.

Moreover, lockdown effects need to be seen on the numbers as the cases and infection rate are still on the rise.”

“Economic activity is low, while the partial lockdown should reduce demand for dollars to keep currency/forex reserves buoyant,” Soomro added.

Of 394 active scrips, 195 gained, 181 lost, and 18 remained unchanged.

Sateesh Balani, director research at Ismail Iqbal Securities, said the equities couldn’t maintain momentum and ended lower as investors chose to cover their positions and opted for profit-taking owing to the last day of the rollover week.

Cements, oil and gas exploration and production companies, and banks collectively knocked out 190 points from the index, Balani added.

Ahsan Mehanti, senior analyst at Arif Habib Corporation, said, stocks ended bearish amid consolidation in the post earnings season mainly owing to pressure in global equities, crude oil prices and uncertainty over the outcome of Pakistan-IMF talks over the resumption of Extended Fund

Facility during COVID-19 pandemic. “Investor concerns over foreign outflows and rupee instability dragged the stocks down,” Mehanti added.

Rafhan Maize, up Rs200 to close at Rs8,600/share, and Colgate Palmolive, up Rs78.27 to finish at Rs2928.27/share, grabbed highest gains, while Khyber Tobacco, shedding Rs22.40 to close at Rs413.45/share, and Mari Petroleum, down Rs21.09 to close at Rs1,364.05/share, ended up as the worst losers of the day.

Unity Foods Limited posted highest volumes with 53,464 million shares, gaining Rs0.62 to end at Rs25.46/share, whereas WorldCall Telecom recorded the lowest with 11,175 million shares, and it gained Rs0.04 to end at Rs1.08/share.