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

Hoping for miracles
Updated 26 Sep 2021

Hoping for miracles

Pakistan will be exposed to international recrimination if the Taliban revert to their old ways.

Editorial

Updated 26 Sep 2021

Intransigent Taliban

PRIME MINISTER Imran Khan has delivered an effective speech at the UN General Assembly session detailing the salient...
26 Sep 2021

Deadly misinformation

THE distinction between ‘fake’ and ‘authentic’ news is now a concept impossible to escape. In an...
26 Sep 2021

Covid arrests

THE unilateral decision taken by Karachi’s East Zone police to arrest citizens without Covid vaccination cards ...
25 Sep 2021

NAB controversy

THE completion of the four-year term of NAB chairman Javed Iqbal early next month has afforded Prime Minister Imran...
Cabinet ‘inclusivity’
Updated 25 Sep 2021

Cabinet ‘inclusivity’

Voices are being raised questioning when the much-hyped inclusivity the group had talked about will materialise.
25 Sep 2021

Quorum malady

LACK of quorum has become a chronic problem for the present National Assembly which is in the process of becoming a...