KARACHI: Pakistan Stock Exchange (PSX) remained under pressure during the outgoing week ended on November 12, due to selling on investors concerns over depreciating local currency, increasing inflation and delay in any positive outcome on Pak-IMF talks. KSE-100 index plunged by 1,546.65 points on week-on-week basis and closed below 46,000 psychological level at 45,749.15 points.
Trading activities also remained thin as average daily volumes on ready counter decreased by 26.4 percent to 316.38 million shares as compared to previous week’s average of 429.74 million shares. Average daily traded value declined by 27.9 percent to Rs 10.97 trillion.
BRIndex100 decreased by 242.49 points during this week to close at 4,726.52 points with average daily trading volumes of 246.827 million shares.
BRIndex30 declined by 1,568.20 points to close at 20,644.37 points with average daily turnover of 167.440 million shares.
Total market capitalization declined by Rs 278 billion during this week and stood at Rs 7.818 trillion.
“In a failed attempt to carry the positive momentum, as witnessed in previous weeks, KSE-100 index continued its negative trajectory, closing at 45,749 points”, an analyst at AKD Securities said. In the outgoing week, the index cumulatively lost 1,547 points or 3.27 percent on week-on-week basis where market remained volatile throughout the week.
The market witnessed across the board selling as investors remained uncertain on the news that IMF talks have remained inconclusive and hinged upon stamped clearance of two IMF departments (Strategy, Policy, and Review Department (SPRD)) while political uncertainty on various fronts, concerns over rising inflation and PKR depreciation against dollar also played over market sentiments.
Flow wise, companies remained the major buyers with (net buy of $6.5 million) followed by Insurance Companies (net buy of $5.72 million) while Individuals stood on the other side with (net sell of $10.24 million) followed by foreigners (net sell of $5.28 million).
Stock wise, major performers were GATI (up 6.7 percent), MUREB (up 4.6 percent), FFC (up 2.8 percent), EFERT (up 1.6 percent), LOTCHEM (up 1.4 percent), while laggards were SFL (down 23.3 percent), ATRL (down 13.9 percent), HCAR (down 11.3 percent), HASCOL (down 10.8 percent) and KTML (down 10.6 percent).
An analyst at JS Global Capital said the KSE-100 Index declined by 3.3 percent on WoW, where most heavyweights closed in the red zone, with barely two sectors posting a positive close this week.
Uncertainty and lack of triggers wiped out most of the gains that were posted last week, taking the benchmark’s closing to 45,749 levels. Where absence of clarity over talks with IMF kept investors shy, delay in receipt of the $3 billion cash deposits from Saudi Arabia and rising KIBOR also added to market woes. Consequently, PKR continued to depreciate against the greenback, closing at an all-time-high – Rs 175.75.
Copyright Business Recorder, 2021
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