Daily Times

KARACHI: Red ink splashed everywhere at the local bourse with the benchmark KSE-100 index losing 644 points, to close at 42,359. The index continued to slide throughout the session, hitting a day’s low of -707 points towards close.

Market opened negative and continued its slide throughout the day. The pressure continued from previous session where investors remained wary of foreign selling and continued deterioration in macro-economic outlook, while Moody’s report added to concerns as the Rating Agency downgraded Pakistan’s outlook from stable to negative.

Downward trend was likely due to Moody’s Investors Services action of downgrading Pakistan’s rating to negative from stable. Moreover, current account deficit (CAD) rose to $16 billion in the first 11 months of this fiscal year, an increase of 43 per cent from the same period last year, said Danish Ladhani, an equity analyst.

Major heavyweights namely, Habib Bank Limited (HBL) losing 3.26 percent, Pakistan Petroleum Limited (PPL) losing 2.06 percent, Oil Gas Development Company (OGDC) losing 0.81 percent, Engro losing 0.77 percent, United Bank Limited (UBL) losing 3.60 percent, MCB Bank losing 0.03 percent, Pakistan Oil Fields (POL) losing 1.30 percent, Fauji Fertilizer Company (FFC) losing 0.08 percent and Lucky Cement losing 1.20 percent cumulatively contributed -273 points.

Traded volumes improved by 77 percent day-on-day ( DoD) to 242 million shares while value traded increased to $76 million.

Top volume stocks were K-Electric with 2.48 percent decline, PIBTL with 9.01 percent increase and TRG with 0.52 percent drop.

All the major sectors came under pressure including financials, cements and energy. Ladhani expects market to remain volatile and choppy with flows from local and foreign institutions directing the market.

Muhammad Arbash, research analyst at Elixir Securities expects market to remain dull with any positive development regarding the Amnesty Scheme being the only near term trigger in sight.

Published in Daily Times, June 22^nd 2018.