Stocks end down as world rout weighs

Stocks on Wednesday tracked a global slide with lockdown wary investors taking no chances ahead of rollover week amid sharp rupee depreciation and loud political noise, dealers said.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index lost 0.34 percent or 138 points to close at 40,514.67 points. Volumes decreased to 145.897 million shares, as compared with 150.341 million on Tuesday. KSE-30 shares index followed the suit with a low of 0.34 percent or 57.79 points to end at 17,056.49 points level.

Topline Securities in its daily market review noted that in line with a decline in international markets and oil prices the benchmark index opened sideways making an intraday low of 308 points.

Lackluster activity was witnessed at the bourse as increasing COVID-19 cases and political noise from the PDM’s (Pakistan Democratic Movement) rejection of a ban on public meetings continued to cloud investors’ minds, the brokerage added.

Muhammad Saeed Khalid, head of research at Shajar Capital said, “The market remained sluggish during the day, mainly due to rising uncertainty over lockdowns in the country as COVID-19 cases are rising on daily basis”.

He added that investors also remained cautious ahead of rollover week and booked capital gains in the blue chip scrips.

A A Soomro, managing director at KASB Securities, said, “the index is stuck in a range”.

"Even the IMF news couldn’t help rejuvenate the sentiment,” he said.

Moreover, one percent depreciation in rupee value against dollar and news of enhancement of circuit breaker to 10 percent kept the market mixed, Soomro said and added that investors were eagerly awaiting a direction.

Trading activity was recorded in 377 active scrips, of which 149 went up, 203 lost, and 25 remained unchanged.

Tahir Abbas, director research at Arif Habib Ltd, said, “The investors showed grave concern over rising COVID-19 cases as it was likely to bring some lockdown”.

Though the government had ordered strict adoption of anti-virus preventive measures, rising cases might force harsher measures, which if implemented again would hit the economy hard, Abbas added.

Analyst Ahsan Mehanti from Arif Habib Corporation said, “Stocks closed lower amid thin trade on institutional profit-taking in overbought scrips post earnings season and uncertainty over terms of Pakistan-IMF talks over resumption of Extended Fund Facility”.

Foreign outflows, rupee instability and uncertainty in global equities weighed on stocks, Mehanti added.

The E&Ps sector closed 0.8 percent lower. Meanwhile HBL, ENGRO and PSO dented the index by 51 points. On the results front, HCAR closed 1.18 percent lower after posting its 2QMY21 EPS of Rs4.6 (+29 percent YoY), which was higher than industry expectations.

Island Textile, up Rs90 to close at Rs1,725/share, and Rafhan Maize, up Rs80 to finish at Rs8,255/share emerged as the highest gainers of the day. Colgate Palmolive, down Rs50.92 to close at Rs2799.08/share, and Nestle Pakistan, losing Rs19.01 to close at Rs6469.99/share, incurred most losses.

With 11,953 million shares, TRG Pakistan Limited led the volumes chart. It gained Rs1.2 to end at Rs53.80/share. Maple Leaf Cement posted thinnest turnover with 4.569 million shares, losing Rs0.33 to end at Rs39.76/share.