Market dips on EU decision to review GSP+

The market was down on Monday with bears dominating bourse on account of EU Parliament’s decision to review Pakistan’s GSP plus status with questions raised on abuse of certain Pakistani laws, dealers said.

Also, the lethal wave of the global pandemic continues to affect the stock market, which dampened investor sentiments as well.

AAH Soomro at KASB Securities said stock market ended lower amid lack of triggers and fear of possible lockdown due to deteriorating Covid-19 situation in the country.

“The benchmark KSE-100 index plunged from the moment trading began and kept trading in the red throughout the day. Rising uncertainty ahead of the long holiday season sparked panic selling by investors, which pushed the index lower.”

Pakistan Stock Exchange (PSX) KSE-100 shares index shed 0.42 percent or 186.15 points to close at 44,076.20 points. KSE-30 shares index shed 0.41 percent or 73.37 points to close at 18,027.27 points.

As many as 360 scrips were active of which 111 advanced, 238 declined and 11 remained unchanged.

The ready market volumes stood at 238.44 million shares compared with the turnover of 293.74 million shares in the last trading session.

An analyst at Arif Habib Limited said roll-over trades from April futures contract that remained outstanding at the end of roll-over week on Friday caused mayhem on Monday as well, especially the positions in TRG Pakistan and Netsol Technologies.

“Recovery ensued, considering that the positions have rolled-over however, since the positions were still outstanding, the recovery efforts proved futile.”

Netsol hit lower circuit since the beginning of the session, whereas TRG Pakistan traded near lower circuit the entire session.

Besides technology stocks, selling pressure was observed in cement and steel sectors, which kept the index down.

Ahsan Mehanti at Arif Habib Corp said stocks closed lower on concerns over higher CPI inflation and low corporate payouts in the earnings season. “Foreign outflows, pre-budget uncertainty and consolidation post major earnings announcements at PSX played catalytic role in the bearish close,” he added.

Neelam Naz at JS Global Capital said KSE-100 index witnessed a volatile session, where bears remained in control throughout the day.

“The market came in the positive zone during the day; however, could not sustain due to aggressive selling by market participants.”

“Going forward, there may be some near-term tension ahead of the long Eid holidays but we recommend investors to look past that. We feel any correction in the stock market in this week will be an opportunity to invest at lower levels,” Soomro said.

Companies reflecting highest gains included Unilever Foods, up Rs1,000 to close at Rs15,000/share, and Wyeth Pakistan, up Rs71.25 to close at Rs1,021.25/share.

Companies reflecting most losses included Rafhan Maize, down Rs369.97 to close at Rs9,455.03/share, and Bata Pakistan, down Rs130 to end at Rs1,670/share.

Highest volumes were witnessed in Unity Foods with a turnover of 36.36 million shares. The scrip gained Rs1.27 to close at Rs32.06/share.

Telecard Limited was second with a turnover of 24.35 million shares. It shed Rs1.03 to close at Rs13.75/share. Ghani Global was third with a turnover of 23.14 million shares. It shed Rs2.7 to finish at Rs35.98.