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KARACHI: Bulls took the market by storm on Thursday with the KSE-100 index going into a deep plunge of 285.56 points (0.71 per cent) and settle below the 40,000 level at 39,868.55.
The first signs of a reticent market were provided by the trend in the last 10 days when the index moved mostly sideways. It opened positive and remained volatile for the most part with the benchmark moving between the intraday low and high of 373 and 95 points.
It was in the final hour that investors decided to book profit with major selling of $3.63 million coming from banks. Foreigners who had picked up equities a day earlier also sold off shares in the sum of $2.68m. Companies, individuals, insurance and brokers proprietary account continued to mop up liquidity.
The volume declined by 8pc over the earlier day to 394m shares and traded value fell 24pc to $84.4m.
Leaders included TRG, PTCL, Unity Foods, TPL and Kot Addu, which formed 28pc of total turnover.
Selling activity was observed in fertiliser, cement, refinery and oil and gas marketing companies. It intensified after lower-than-expected results were declared by Faysal Bank and MCB together with the investors worry over the upcoming rollover week where the future open interest positions on Wednesday stood at Rs13.9 billion.
Pakistan Investment Bonds’ auction a day earlier also saw rise in shorter-term tenors. The State Bank’s FDI data further dented investors’ confidence as July figures showed a plunge of 35pc month-on-month to $114.3m. Sentiments were also driven by concerns over the impact of the recent memorandums of understanding signed by the government with independent power producers.
Sectors contributing to the performance included cement, lower by 81 points, banks 39 points, O&GMCs 26 points, exploration and production 24 points and power 23 points. Among scrips, major laggards were Engro Corporation, down 1.2pc, Hub Power 1.7pc, Lucky Cement 1.6pc, Oil and Gas Development Company 0.5pc, MCB 4.2pc and Pakistan Petroleum 1pc.
Published in Dawn, August 21st, 2020
