PSX lacks trading interest amid Covid, weak rupee

Published July 24, 2021
Pakistani stockbrokers watch the latest share prices on a digital board during a trading session at the Karachi Stock Exchange (KSE). — Dawn/File
Pakistani stockbrokers watch the latest share prices on a digital board during a trading session at the Karachi Stock Exchange (KSE). — Dawn/File

KARACHI: Stock market remained subdued on the first trading day after a three-day holiday. With the weekend ahead and nothing to cheer, investors thought it wiser to wait until the market opens next week.

The KSE-100 index remained range-bound, moving between the intraday high and low by 73 and 187 points before finishing off Friday’s second session at a loss of 80.10 points, or 0.17 per cent, at 47,793.

Investors mood was spoiled with the slide of the rupee in interbank market; the spike in the coronavirus cases in Sindh that prompted the provincial government to clamp down restrictions from Monday, with a ban on indoor and outdoor dining at restaurants; limiting market opening timings; closing down of educational institutional; ban on holding marriage functions and others.

Moreover, slump in global crude prices, Pakistan’s current account clocking in much higher-than-expected deficit of $1,644m in June (vs a deficit of $650m in May) and roll-over week ahead together with varying expectations over Monetary Policy Statement (MPS), scheduled for July 27, kept investors on their toes.

Foreign investors sold stocks in the massive sum of $13m. Market strategists said it represented sale of Byco shares by the majority holder Abraaj capital in the Negotiated Deal Market (NDM). These were picked up by local participants with individuals bought stocks worth $7.50m; broker proprietary trading $2.16m and companies $1.69m.

Sector-wise, cement, steel, fertiliser and refinery remained under pressure due to exposure of declining rupee parity on the cost of production. On the other hand, weakening rupee had positive bearing on technology, textile and E&P sectors.

Stocks that contributed negatively include Engro Corp (12 points), MLCF (10 points), PSO (10 points), TRG (9 points) and PSX (9 points).

The trading volume declined 2pc to 314.2m shares from 320.9m shares. The traded value also declined by 7pc to reach $68.3m. Byco was the volume leader with change of hand in 34m shares.

Published in Dawn, July 24th, 2021

Opinion

Awaiting orders
25 Oct 2021

Awaiting orders

Orders are given for demolition. Some structures go down. Some still stand.
Is it our own?
25 Oct 2021

Is it our own?

It is fair to ask what truly determines our success.
Up, up and away
Updated 25 Oct 2021

Up, up and away

Irate Twitterati want Superman to stop meddling.
No-trust resolution dynamics
Updated 24 Oct 2021

No-trust resolution dynamics

It is heartening that the effort to remove a chief minister is following constitutional norms.

Editorial

25 Oct 2021

Party to a vile campaign

THE PTI government’s hostility towards the media and its intolerance for dissent is well known. The target of ...
Financial crisis
Updated 25 Oct 2021

Financial crisis

DESPITE having progressed to ‘very good step’ and being ‘close to concluding the agreement’ a few days back,...
25 Oct 2021

Morals and Pemra

TIME and again, Pemra has come under fire for issuing arbitrary instructions to TV channels on matters ranging from...
Anti-government rallies
Updated 24 Oct 2021

Anti-government rallies

Banning a party because it can create a public nuisance sets a dangerous precedent which can be repeated to justify future bans.
24 Oct 2021

End of polio?

AFTER a long struggle, the reward is finally in sight. With only a single case of wild poliovirus reported this year...
24 Oct 2021

Heritage work

IT is encouraging that, slowly, projects of heritage conservation and preservation appear to be taking off. These...