Stocks fell on Friday after Sindh government clamped rigorous restrictions in the province to arrest the fourth wave of Covid-19, currently on the rampage, traders said.
Pakistan Stock Exchange's (PSX) benchmark KSE-100 Share Index lost Rs257.04 or 0.54 percent to close at 47,055.29 points, testing a session high of 47,641.96 points and a low of 46,921.15 points.
Brokerage Topline Securities in a note said the index opened on a positive note and gained as many as 330 points in the day.
“However, the market came under pressure in the second half of the trading session, as Sindh government’s imposed a full lockdown in the province starting tomorrow (Saturday) till August 8, 2021,” the brokerage said.
TRG, FFC, HBL, LUCK, and PPL cumulatively damaged the index by 170 points, it added.
KSE-30 Shares Index also lost 126.39 points or 0.67 percent to close the day at 18,837.05 points.
Traded shares shrank 23 million shares to 399.09 million shares from 376.44 million a day earlier, while trading value increased to Rs13.76 billion from Rs12.26 billion.
Market capital dropped to Rs8.242 trillion from Rs8.268 trillion.
Out of 407 active names in the session, 139 ticked up, 252 edged down, while 16 posted no change.
Ahsan Mehanti from Arif Habib Corp said stocks closed lower in late selling on concerns over foreign outflows and provincial government decision to impose lockdowns to slow down the new Covid wave.
He said early session support came from reports of surge in regional exports by 9 percent in FY21 and strong financial results in banking and fertiliser sectors.
“Weak global equities and investor concerns regarding potential economic impact of Covid outbreak pushed the stocks in the red,” he said.
The highest increase was recorded in shares of Siemens Pak, which rose by Rs44.49 to Rs637.82 per share, followed by Colgate Palmolive that jumped Rs28.20 to close at Rs2,810.72 per share.
Major losses were suffered by Sapphire Fiber, which fell Rs44.99 to end at Rs855 per share, followed by Wyeth Pak Ltd that lost Rs31.88 to finish at Rs1,987.50 per share.
Brokerage Arif Habib Limited in its market review said hoping that Covid lockdown might be deferred, the market added 330 points earlier in the session; however, government’s decision to impose strict lockdown in the face of rising cases eroded all the earlier gains.
“Banks, oil and gas marketing companies, cement, chemical, refinery, and technology sectors bore the brunt of lockdown, whereas steel sector performed well due to announcement of price increase by flat steel manufacturers,” the brokerage said in its report.
Significant turnover was recorded in WorldCall Telecom, Byco Petroleum, Telecard Limited, Hum Network, TPL Corp Ltd, Pakistan International Bulk, Treet Corp, Silk Bank Ltd, Hascol Petrol, and TRB Pak Ltd.
WorldCall Telecom emerged as the volume leader after its 39.17 million shares changed hands in the session. The scrip gained 4 paisas to end at Rs3.46 per share. The second highest traded stock was Byco Petroleum, posting a trade of 38.43 million shares. It gave up 22 paisas to end at Rs9.77 per share.
Share turnover in the future contracts reduced to 281.37 million from 296.46 million in the previous session.
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