KARACHI: Shares fell on Friday as the KSE-100 index was down 136.43 points (0.34 per cent) and settled for the weekend at 40,029.69. With the benchmark looming over the 40,000 level, nervous investors and institutions decided to take profit and begin building positions afresh from the upcoming week.
Start of the results season also impacted investor sentiments as they worried over a decline in top and bottom line of corporates that had to cease operations due to the ravages of Covid-19 during the quarter. United Bank Ltd and Engro Polymer have already come up with quarterly results which seem to be better-than-expected.
Other worries that sat on the minds of institutional players were the increase in profit rates on National Savings Schemes, drop in international oil prices and higher-than-expected inflation for July at 9.3pc which triggered speculation about State Bank’s stance on policy rate.
The market remained volatile throughout the day, lifting to intraday high of 300 points and an intraday low of 182 points. Traded value of shares stood at $137 million, while volume was down 12pc at 729m shares with major contribution coming from Worldcall Telecom for the second day on the back of ARY Communications’ public announcement of intention to acquire 51pc stake in the company.
Other volume leaders included Pakistan International Bulk Terminal, Pak Elektron and Unity Foods with cumulative 284m shares traded. After four days buying, foreign investors switched back to selling of $1.01m worth equity.
An analyst at JS Global commented that cements and banking sector witnessed profit-booking. In the former, Cherat, Pioneer, Power, DG Khan, Fauji and Maple Leaf succumbed to selling pressure while in the latter, Habib, United, MCB and Bank of Punjab closed in the red. The other cyclical, steel sector, gained to close higher where interest was seen in Amreli, International, Mughal, International Industries and Crescent.
Published in Dawn, August 8th, 2020
