Stocks dip 492 points amid thin volume
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KARACHI: Stocks tumbled on first trading day of the week where the KSE-100 index lost 491.81 points (1.50 per cent) and closed at 32,314.57.
Negative sentiments pervaded the market right from the start with the index remaining in the red throughout the session, hitting intraday low by 675.15 points. Investor participation was thin due to Ramazan and on concerns over the pandemic as some spelt out dire predictions for the next two weeks.
The tone was set by the lower-than-expected corporate earnings disclosed by some major companies; drop in prices of stocks in the cement and oil and gas exploration and production (E&P) sectors.
Investors rushed to book profit in the cement scrips following reports of the prime minister’s expression of displeasure over increase in prices per bag. It sent all but one of the sector’s stock shares spiralling downwards.
On the energy front, crude prices tumbled as US storages reached near all-time highs, signalling a further pressure on prices. All three major stocks - Oil and Gas Development Company, Pakistan Oilfields and Pakistan Petroleum - declined.
Foreign selling remained unabated, recording an outflow of $1.27 million. Among local participants, mutual funds sold shares worth $2.49m. The liquidity was mopped up by the insurance companies and brokers’ proprietary buying.
The volume was up 2pc to 122.2m shares, from 120.2m while traded value increased 8pc to reach $33.m. Stocks that contributed significantly included Maple Leaf Cement, Hascol Petroleum, DG Khan Cement, Unity Foods and Pioneer Cement, which formed 35pc of total turnover. Cement sector led the volume with 41.5m shares changing hands.
Sectors contributing to the performance included E&P, lower by 89 points, cement 85 points, banks 84 points, power 59 points and oil and gas marketing companies 38 points.
Heavyweight stocks that dragged down the index included United Bank, decreasing by 2.9pc, Lucky Cement 2.9pc, Kohat Cement 7.5pc, Bank Alfalah 3.2pc, Pakistan Oilfields 2.1pc, Oil and Gas Development Company 2pc, Engro Corporation 1.5pc, MCB 0.3pc and Habib Bank 0.3pc.
Published in Dawn, April 28th, 2020
