KARACHI: Amid political tensions and surging third wave of Covid-19, the stock market remained under heavy selling pressure as the benchmark KSE-100 index lost 599 points, or 1.32 per cent, closing the jittery week at 44,706.76 points.

From the onset of the trading week investors behaved cautiously in the wake of ongoing protests and sit-ins by the TLP and a shutterdown call across the country by some religious groups that further dampened the trading sentiments at the bourse.

Arif Habib Ltd, in its report, said slight relief appeared in the form of robust result announcements, but it remained short-lived as growing prevalence of Covid-19 infection globally and rising local cases, squashed any signs of recovery at the market.

Meanwhile expectations of a wider lockdown to be implemented by the NCOC also kept investors wary. Contribution to the downside was led by oil and gas exploration companies (210 points), cement (78 points), power generation (93 points), chemical (79 points), and oil and gas marketing companies (77 points). Whereas sectors that contributed positively include commercial banks (160 points) amid strong result outcomes, technology (58 points) and fertiliser (28 points).

Scrip-wise major losers were OGDC (96 points), Hubco (76 points), and PPL (56 points). While top positive contributors were TRG (118 points), Engro Corp (77 points), and HBL (60 points).

Foreigners accumulated stocks worth of $7.3 million during the week compared to a net sell of $0.9m last week. Major buying was witnessed in technology and communication ($4.80m) and commercial banks ($2.42m). On the local front, selling was reported by mutual funds ($7.73m) followed by companies ($5.35m).

The average daily volume and traded value for the outgoing week were down by 10pc and 3pc to 333m shares and $97m, respectively.

Other major news that influenced the stock market includes SBP’s reserves down by $63m, Rs800bn proposed for PSDP in Budget 2021-22, UK pledges support on FATF, cut in yields on T-bills and raised Rs708bn through T-bill auction and foreign direct investment plunged 35pc year-on-year in 9MFY21.

Going forward, a complete lockdown on a national level is unlikely though the NCOC has advised stricter restrictions and shorter work hours. This will be a sigh of relief for the business community. Albeit, third wave of the novel coronavirus remains a key risk for the market. However, the strong result season appears to be a solid indicator of the economic and corporate recovery.

Published in Dawn, April 25th, 2021