KARACHI: Profit-taking was witnessed on the first trading day after six-day holidays at the stock market. The KSE-100 index fell 141 points (0.42 per cent) and closed at 33,695.
Selling mainly came from foreigners and local institutions while value buying by individuals prevented the market from sinking lower; the index remained in the red for all of the day and declined to intraday low by 238 points before making a slight bounce back towards the end.
The market remained under pressure for a number of reasons, mainly as only two trading sessions remained for investors to settle May open positions. Current account deficit that clocked in at $572 million in April, compared to $9m in March was a damper on investor sentiments who were visualising discernible improvement in economic indicators.
Investors also restrained themselves from putting more cash in equities due to COVID-19 uncertainties as cases of infection crossed 60,000. On the positive side, the World Bank approved $500m in a loan programme to boost Pakistan’s pandemic emergency response.
Moreover, Finance Adviser Abdul Hafeez Sheikh said the government was preparing a ‘Corona Budget’ and trying to provide maximum relief to the people in ir.
The volume jumped 32pc to 194.6m shares, from 147.2m while traded value also increased by 25pc to reach $45.1m, as against $36.4m. Almost half the volume was contributed by mid-tier stocks including TRG, Hascol, Unity Foods, Pak Elektron and Maple Leaf Cement.
Technology stocks were in the limelight where TRG, Avanceon and Netsol closed at their upper circuit. Pharmaceutical kept up the bullish momentum as race to be the first to discover a vaccine for treatment of Covid-19 intensified.
Exploration and production scrips fell on decline in international oil prices with Pakistan Petroleum down 2pc, Oil and Gas Development Company 1.8pc and Pakistan Oilfields 1.3pc closing in the red. Banks also came under the hammer as prices of most decreased: Habib fell 1.6pc, United 2.6pc, Alfalah 2.8pc, Al Habib 0.9pc and MCB 0.4pc.
Published in Dawn, May 29th, 2020
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