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Friday March 29, 2024

Stocks extend losses on economic slowdown concerns

By Our Correspondent
September 22, 2022

Stocks ended lower on Wednesday, tracking regional equities as concerns over an economic slowdown weighed on investor sentiment, dealers said.

The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index closed lower by 255.33 points or 0.62 percent to 40,965.58 points. The highest index of the day remained at 41,358.97 points while the lowest level of the day was recorded at 40,871.53 points. KSE-30 index also decreased by 110.70 points or 0.72 percent to 15,336.78 points.

Traded shares increased by 14 million shares to 170.416 million shares from 156.574 million shares. The trading value dropped to Rs4.827 billion from Rs5.668 billion. Market capital narrowed to Rs6.728 trillion from Rs6.773 trillion. Out of 319 companies active in the session, 100 closed in green, 195 in red and 24 remained unchanged.

Brokerage Arif Habib Ltd said another down-close session was witnessed after a positive start earlier in the day. “Continued pressure on the rupee softened sentiment to take the benchmark index below 41k levels,” the brokerage said in a post market note. “All eyes now on the (US) Fed tonight and the quantum of rate increase.”

Analyst Muhammad Arbash at Topline Securities, said the day kicked off on a positive note making an intra-day high of 136 points, however bears dominated the index which led the market to make an intraday low of 349 points.

Sectors contributing to the performance include E&P (-91.9pts), Cement (-39.3pts), Technology (-26.9pts), Banks (-24.3pts) and OGMCs (-22.2pts).

Major negativity came from Oil & Gas Development Company (OGDC) as the stock dragged down 56 points as investor expecting lower dividend payout like Pakistan Petroleum Limited (PPL).

On the result front, Fauji Cement Company Limited (FCCL) announced its 4QFY22 EPS at Rs1.40 along with 12.5 percent bonus shares.

The highest increase was recorded in shares of Sapphire Fiber, which rose by Rs80.69 to Rs1,156.57 per share, followed by Sapphire Tex., which increased by Rs76.53 to Rs1,097.03 per share. A significant decline was noted in shares of Rafhan Maize, which fell by Rs100 to Rs9,650 per share, followed by Sitara Chemical, which decreased by Rs17.96 to Rs244.33 per share.

Analyst Ahsan Mehanti at Arif Habib Corp said stocks closed lower amid slump in global equities and weak economic outlook.

“Dismal data on auto financing, falling rupee and investor concerns for economic impact of flood losses played a catalyst role in bearish close,” he added. “However, mid-session support witnessed on speculations over likely FATF decision over exit from grey list, ADB support aid package and funds from friendly countries.”

K-Electric Ltd. remained the volume leader with 40.319 million shares that decreased by 10 paisas to Rs2.90 per share. It was followed by TPL Properties with 11.928 million shares that closed lower by 54 paisas to Rs19.36 per share.

Other stocks that recorded significant turnover included TRG Pak Ltd, Cnergyico PK, WorldCall Telecom, Fauji Cement, Unity Foods Ltd, Fauji Foods Ltd, Hascol Petrol and Sui North Gas. Shares’ turnover in the future contracts increased to 50.295 million shares from 47.477 million shares.