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KARACHI: The stock market witnessed consolidation on the last trading day of the week when the KSE-100 index declined 340 points (0.83 per cent) and settled at 40,732.
The market had taken strides in the recent days, which warranted slight cooling at around the 41,000 levels. There is however lost ground to be covered as at the pre-Cvoid-19 level on Jan 12, the index was at a high of 42,218 points.
The tone of the market was bullishly inclined on Friday but for the uncertainties surrounding the local political climate, the daily increase in new Covid-19 cases and the reaction of the international oil and commodity markets after the declaration of the results of US Presidential elections.
Faisal Shahji, strategist at Standard Capital said that investors were avoiding taking fresh positions regardless of the healthy July-Sept quarter corporate results.
He said that in the recent days, the overall forms of leverage had decreased which could point to slight setback in investors’ interest in equities. “One reason can be prospects of further weakening of the dollar which could prompt more foreigners’ selling”. But he thought that the sentiments in the international markets can sway local bourse.
On Friday, selling pressure was observed across the board, mainly in the two index heavyweight sectors: banks and exploration & production. The oil stock took a hit due to dip in the international crude oil prices. Cement sector was also battered with drop in prices of Lucky, D.G. Khan, Maple leaf, Pioneer and Cherat cement. In the banking sector, United Bank Ltd (UBL), Habib Bank Ltd (HBL), MCB Bank Ltd and Bank Al Falah Ltd closed in the red.
Technology sector caught investors fancy as the three major shares, TRG Pakistan, Netsol Technologies and Avanceon Ltd gained values.
Volumes declined from 356.6 million shares to 350.4m shares, up 2pc day on day. Traded value also declined by 2pc to reach $72.4m.
Stocks that dragged the index down included HBL, down 49 points, MCB 32 points, Engro Corporation 27 points, UBL 26 points and Pakistan Petroleum Ltd 20 points. Scrips that provided support to the benchmark included TRG, Meezan Bank, Unity Foods and Systems Ltd.
Published in Dawn, November 7th, 2020
