Stocks lose 2.7pc amid Covid resurgence

Published April 4, 2021
The market has been unable to gain a firm foothold after it slipped from the rec­ent high of 47,000 points. — AFP/File
The market has been unable to gain a firm foothold after it slipped from the rec­ent high of 47,000 points. — AFP/File

KARACHI: Bears dominated the stock market in the outgoing week as the KSE-100 index tumbled by 1,221 points, or 2.7 per cent, to close at 44,301.

The market has been unable to gain a firm foothold after it slipped from the rec­ent high of 47,000 points. In the outgoing week, the market was held hostage to the flare-up in Covid-19 infection cases that forced the Punjab government to imp­ose lockdowns in some big cities.

As the overall infection remained above 10pc, investors were worried over exte­n­s­ion in lockdowns in other cities including Karachi. They were spooked by a repeat of the Feb 2020 slowdown in production and sales and supplies which would all go down to hurt the corporate bottom-lines in the quarterly results going forward.

On the economic side, the investors also ignored the lower than expected CPI of 9.1pc against consensus expe­c­t­ation of 9.6pc; heavy appreciation of the rupee against the dollar and the record high built-up in foreign exchange reserves. The outgoing week also saw successful issuance of the dollar-denominated Eurobonds in international markets that raised $2.5bn.

Going forward, veterans and experts predicted a ran­ge-bound or slightly positive market behaviour. The rupee on the upside, foreign excha­nge reserves piling up and receipt of more than $800m inflows under the Roshan Digital Accounts were all positive for the market.

Yet everything hinges on the course that the Covid-19 takes. However, optimists said that the upcoming results season with the roll out of financial figures from next week could support the market.

Published in Dawn, April 4th, 2021

Opinion

Modi’s movies
Updated 16 Jun 2021

Modi’s movies

Fascists seek to control cultural production in a country in order to realise the complete and centralised control of power.
Bye bye Bibi?
16 Jun 2021

Bye bye Bibi?

Netanyahu’s ouster doesn’t really spell change.
Debating the budget
Updated 15 Jun 2021

Debating the budget

Parties, too, have grown, it seems, and are being compelled to think about their problematic economic policies.

Editorial

Centre-Sindh tension
Updated 16 Jun 2021

Centre-Sindh tension

Such an adversarial state of affairs is not sustainable without damaging the working of the federation.
16 Jun 2021

Punjab budget

PUNJAB is where the battle for power will be fought in 2023. Punjab is also where PTI parliamentarians are perhaps...
16 Jun 2021

Haj decision for women

WHILE this year’s Haj will again be marked by a limited number of pilgrims, the Saudi government’s decision to...
15 Jun 2021

Middle East’s plight

THE Middle East is geopolitically and economically perhaps the most important region of the world, home to much of...
Thoughtless eviction
Updated 15 Jun 2021

Thoughtless eviction

Promised compensation of Rs20,000 per month for two years is hardly worth the adversity evicted residents have to undergo.
15 Jun 2021

Cinema ‘industry’?

THE vast gap that often exists between the state’s intentions and its actual efficiency was evident in the third...