Uncertainty gripped the stock market on Wednesday as the benchmark KSE-100 index dived over 400 points in intra-day trading ahead of the release of Economic Survey 2020-21 and announcement of federal budget
The government will release the survey report on June 10 and unveil the budget for fiscal year 2021-22 on June 11
It will be the third budget of the Pakistan Tehreek-e-Insaf (PTI) government, in which it is expected to levy new taxes and increase the existing ones
Discussions with the International Monetary Fund (IMF) on budget proposals prevented investors from taking fresh positions, therefore, the KSE-100 index failed to sustain the 48,000-point mark
Investors remained wary of pouring fresh investment during the day
In the morning, trading began on a positive note, however, the optimism was overshadowed by gloomy news flow and as a result the index oscillated between green and red zones throughout the day
At close, the benchmark KSE-100 index recorded a decrease of 370
36 points, or 0
77%, to settle at 47,777
62
Arif Habib Limited, in its report, stated that the market remained under pressure with a total loss of 422 points
“Kot Addu Power Company proved to be a disappointment for investors, where dividend declaration of Rs5 per share after release of circular debt-related funds failed to motivate investors,” the report added
Resultantly, the stock came down from the intra-day high to trade below previous day’s closing price for most part of the session
Selling pressure was observed in exploration and production, steel, cement, oil and gas marketing, refinery and technology sectors
Sectors contributing to the performance included banks (-95 points), exploration and production (-68 points), technology (-55 points), cement (-42 points) and power (-33 points)
Stocks that contributed significantly to the volumes included WorldCall Telecom, Hum Network, K-Electric, Kapco and Pakistan Telecommunication Company, which accounted for 69% of the volumes
Individually, stocks that contributed positively to the index were Indus Motor (+19 points), Engro Fertilisers (+8 points), Pakistan Telecommunication Company (+7 points), Unity Foods (+6 points) and PSX (+5 points)
Stocks that contributed negatively were TRG Pakistan (-48 points), Oil and Gas Development Company (-36 points), Pakistan Petroleum (-23 points), HBL (-23 points) and Kot Addu Power Company (-20 points)
JS Global analyst Maaz Mulla said that another volatile session was witnessed at the PSX, where the KSE-100 index closed with a loss of 370 points at 47,777
WolrdCall Telecom remained the volume leader on the back of material information released on Tuesday that it had entered into a business collaboration agreement with Tufa Telecommunication targeting fibre-to-the-home service rollout across Pakistan, he said
Selling pressure was mainly noted in banks and cement companies, among which Cherat Cement (-2
7%), Kohat Cement (-1
3%), Pioneer Cement (-1
1%), HBL (-1%), ABL (-0
9%) and Bank AL Habib (-1%) closed in the negative zone
In the exploration and production sector, Oil and Gas Development Company (-2
5%), Pakistan Petroleum (-1
6%), and Pakistan Oilfields (-0
2%) were in the red
However, the auto sector closed on a positive note where Ghandhara Nissan (+2
9%), Hinopak Motors (+3
1%) and Indus Motor (+4
7%) moved higher
“Going forward, with volatility expected in coming days, we recommend investors to view any downside as a buying opportunity in construction and export-oriented sectors,” the analyst said
Overall trading volumes surged to 1
35 billion shares compared with Tuesday’s tally of 1
04 billion
The value of shares traded during the day was Rs23
2 billion
Shares of 416 companies were traded
At the end of the day, 130 stocks closed higher, 274 declined and 12 remained unchanged
WorldCall Telecom was the volume leader with 716
8 million shares, gaining Rs0
58 to close at Rs4
22
It was followed by Hum Network with 75
9 million shares, gaining Rs0
27 to close at Rs8
69 and K-Electric with 59
6 million shares, gaining Rs0
07 to close at Rs4
22
Foreign institutional investors were net sellers of Rs51
9 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan
Date: | 10-Jun-2021 | Reference: | View Original Link |
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