Downward run continues as KSE 100 index sheds 93 points

KARACHI: After a lacklustre week of trading over the lack of triggers, the stock market continued with its downward trajectory on Monday shedding over 90 points in intra-day trading.

The benchmark KSE 100 index at the Pakistan Stock Exchange (PSX) lost 90.79 points, or a decrease of 0.22 percent, to close at 42,539.23 points. The indices shot up till 42,738.56 points but subdued investor confidence halted further growth as it failed to cross the 43,000 threshold. The total volume of scripts was 126.383 valued at Rs5.288 billion.

Meanwhile, the lower benchmark KSE 30 index lost 67.28 points (-0.23%) to close at 29,462.60 points. The total value of scripts was 198.479 million. There was increased investment in the cement sector as MLCF (5.48%), Fauji Cement (2.31%), DGKC (0.75%), Cherat (3.23%) and DCL (4.51%) saw an increase in share prices. Other top active stocks include PIBTL (4.05%), PIAA (4.44%), ASCR (1.81%) and Avanceon (3.39%).

Last week marked a dismal one at the stock market shrouded in uncertainty due to lack of positive triggers. The stock market remained directionless throughout the week as the KSE 100 index ended the week with loss of 535 points on closing day at 42,633 points. The market remained range bound due to lack of any positive political or economic triggers.

The market lost 600 points in the first four days of the week as selling pressure forced investors to book profits. The week started on a negative week over rumours that they government was divesting in the OGDC along by a proposal of a gas hike by OGRA. The government has decided to eliminate GIDC on the fertilizer sector to reduce the price of urea which affected several fertilizer companies due to different gas tariffs.

Pakistan is also expecting a decision on its progress report to the FATF to be removed from the global body’s grey list after a crucial meeting was held in Beijing. The possibility of an early review has created uncertainty which also had an effect on the stock market. Pakistan might be removed from the grey list by June 2020 after a meeting in Paris next month.