KARACHI: Stocks declined on the first day of trading week where the KSE-100 index displayed volatility and moved between the intraday high and low by 165 and 201 points. The benchmark succumbed after midday to selling pressure from cement, steel, oil and gas exploration and production and banking sectors.
At the sound of closing bell, index was in the red by 114.93 points (0.29 per cent) and settled below the 40,000 resistance at 39,914.76.
Investors were spooked by the brewing developments on the political side with controversy generated after Foreign Minister Shah Muhammad Qureshi’s statements on Kashmir issue. However, the impact was diluted by the Moody’s reaffirmation on Pakistan B3 stable economic outlook.
The index received support from the oil marketing companies, tractors and refineries recording major gains that put a floor under the market fall. In the OMCs, Hascol Petroleum moved on the positive side and hit its upper circuit after the stock had witnessed a long period of slow decline.
Among Refineries, Attock closed at its upper limit while National rose to reach slightly short of the upper circuit. Although international oil prices were up, the E&P companies were kept in check by foreign sale which pushed Oil and Gas Development Company, Pakistan Oilfields and Pakistan Petroleum in the negative trajectory. Investors booked profit in the cement where most scrips finished with losses.
On the whole, however, foreigners were net buyers of $1.52 million worth equity, which was again regarded as a breeze of fresh air after ages of persistent selling. The volume declined 21pc over the previous session to 576.5m shares while traded value also dropped by 24pc to reach $104.2m.
Sectors which dragged the index down included technology, lower by 48 points, cement 45 points, E&P 40 points, banks 24 points and insurance 24 points. Among scrips, Engro Corporation, decreasing 0.6pc, MCB 1.1pc, OGDC 0.8pc, PPL 0.8pc, United Bank 0.8pc and POL 1.3pc were the major spoilers of the market.
Published in Dawn, August 11th, 2020
