Can't connect right now! retry

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!
February 25, 2021

Stocks falter after flying start as investors play safe


February 25, 2021

Stocks on Wednesday retreated after making early advances in a rollercoaster session as investors found safety in profit-selling ahead of anti terror-financing watchdog’s verdict on Pakistan, dealers said.

Pakistan stock exchange (PSX) KSE-100 shares index shed 0.80 percent (366.17 points) to close at 45,362.58 points. Volumes shrank to 557.5 million shares from Tuesday’s 718.226 million.

Of 420 active stocks, 80 rose, 322 fell, and 18 neither gained nor lost.

KSE-30 retreated 0.53 percent (101.7 points) to end at 18,884.28 points.

Topline Securities in a note said equities continued yesterday’s declining trend. Profit-taking ensued after a positive start as investors weighed upcoming senate election and FATF decision, the brokerage added.

E&Ps sector closed 1.04 percent down on lower international oil prices, while Engro and Pakistan State Oil cumulatively dented the index by 50 points, it said in its report.

Zaid Aftab at Pearl Securities said the market witnessed another negative session with massive volatility on account of political uncertainty, FATF concerns, Senate elections, and rollover week.

Amongst major financial results, Oil and Gas Development Company in its 2QFY21 financial results announced EPS of Rs4.39, down 24 percent, alongside cash dividend of Rs1.6. The exploration and production company closed 2.0 percent down.

Pakistan Petroleum Limited declined 1.3 percent and Pakistan Oilfields (POL) lost 0.7 percent.

National Bank of Pakistan in its full-year financial results posted EPS of Rs14.3, up 83 percent, but closed 5.1 percent lower as it did not announce any payout.

Pakgen Power’s annual result came with an EPS of Rs11.86, while Lalpir Power (LPL) reported earnings of Rs9.35/share for calendar year 2020. Both companies declared a final cash dividend of Rs1/share and closed 0.2 percent negative.

Mixed sentiments kept the banking sector volatile as Habib Bank surged 1.5 percent and Meezan Bank 3.2 percent, whereas United Bank Limited declined 0.4 percent.

“Going forward we expect the market to behave in the same way and we recommend investors to avail any downside as a buying opportunity in steel, cements and refineries,” Maaz Mulla at JS global Capital said.

Ahsan Mehanti at Arif Habib Corp said stocks closed lower in the future contracts rollover week as investor weighed uncertainty over FATF decision on Pakistan.

Investor concerns over economic uncertainty, dismal data on current account deficit, and ongoing political noise contributed to the losses, Mehanti said.

Wednesday’s top two gainers were Bata Pakistan, strengthening Rs50 to close at Rs1,800/share, and Shield Corporation, adding Rs23.57 to close at Rs337.86/share.

Gatron Industries, shedding Rs42.39 to close at Rs532.5/share was the worst hit stocks of the day, followed by Shezan International that lost Rs25.57 to end at Rs315.44/share.

With its 84.363 million shares changing hands, Byco Petroleum emerged as the most traded stock of the day; however it lost 38 paisas to close at Rs10.04/share. TRG Pakistan, with a turnover of 47.48 million shares, became the second most traded scrip. It shed 94 paisas to close at Rs137.3/share. WorldCall Telecom was third with 27.27 million shares. It gave up 10 paisas to finish at Rs1.54.