Stocks remain on ropes as economic uncertainty deepens

Capital market rout prevailed amid volatile trade as investors continued to pull out, bracing for further tightening of economic activities owing to worsening virus situation, dealers said.

Pakistan Stock Exchange’s (PSX) KSE-100 Shares Index shed 0.44 percent or 196.01 points to close at 44,863.11 points, while volumes shrank to 280.67 million shares from 305.7 million on Wednesday.

Brokerage Topline Securities in a note said after a slight positive opening the market traded sideways in thin volume, making an intraday low of 278 points.

Investors were concerned about rising Covid-19 cases and rise in smart lockdowns following a meeting of NCOC (National Command Operation Center), it added.

The financial results failed to excite investor confidence as the rollover week was still in effect, the brokerage added.

An analyst at Pearl Securities said the index continued to witness pressure as 15,000+ Covid cases were recorded and close to 500 deaths were accounted for in Pakistan for this virus in the ongoing week.

Investors remained bearish fearing possible restrictions amid virus upsurge, the analyst added.

KSE-30 shares index shed 0.61 percent or 113.13 points to close at 18,351.30 points.

As many as 375 scrips were active of which 137 gained, 230 lost, and eight ended neutral.

Ahsan Mehanti at Arif Habib Corp said oil and banking stocks outperformed on surging global crude oil prices and strong financial results in banking sector.

However economic uncertainty and consolidation in the earnings season had a negative bearing on the market, Mehanti added.

Brokerage Arif Habib Limited in its market review said selling was evident across the board, but had the most impact on cement, fertiliser, and steel sectors.

“Financial results have failed to generate the usual interest among investors perhaps due to the upcoming tight budget right after Ramazan and a long hibernating period till the next financial results will be announced,” the brokerage added.

It further said international crude oil prices were on the rise overnight; however, exploration and production stocks did not react to it.

Muhammad Mubashir at JS Global Capital said pressure remained on the market in the rollover week.

The index lost after opening on a positive note but could not maintain over 45,000 points level and fell victim to across-the-board profit taking, Mubashir said.

Asian Development has estimated Pakistan’s growth at 2.0 percent for the current fiscal year.

Going forward, analysts expect the market to remain volatile, and recommend investors adopt the ‘sell on strength’ strategy in the ongoing week.

Pakistan's coronavirus positivity ratio jumped to 9.6 percent on Thursday after over 5,000 new infections were reported in the last 24 hours.

According to the official data provided by NCOC, 5,480 people tested positive for the coronavirus, after 57,013 tests were conducted across the country.

The total tally of COVID-19 cases now stands at 815,711, with most cases reported in Punjab.

Gatron Industries, rising Rs33.5 to close at Rs509/share, and Colgate Palmolive, strengthening Rs50 to close at Rs2,800/share, walked away the best gains of the days.

Pakistan Tobacco, shedding Rs46.33 to close at Rs1,383.67/share, and Sapphire Textile, giving up Rs48.33 to end at Rs851.67/share, were the worst losers.

Hascol Petroleum was the most traded stock with 43.87 million shares, followed by Ghani Global, recording a turnover of 32.63 million shares, and Telecard Limited that saw its 19.56 million shares changing hands on Thursday.