KSE-100 index continued its bearish trend with lackluster activity, as the bourse plunged by 131 points (0.42 per cent) on Thursday to settle at 31,433 points although Asian markets staged a tentative recovery amid mixed lead from Wall Street, regional traders had few catalysts to drive buying.
Low volume did not provide opportunities for trading and most of the short term trading investors preferred to stay out of the market. Volumetric contraction was evident during the trading session and only low priced penny stocks like K-Electric Limited and Worldcall Telecom Limited were volume leaders.
K-Electric announced via notification to Pakistan Stock Exchange (PSX) that the Board of Directors of the company has approved award of EPC contract(s) to Siemens-Harbin consortium to establish 900 MW Combined Cycle Power Plant at Bin Qasim.
The estimated contract value would be around $425 million. The project will be executed on fast track and additional power will be available in summer 2021. Moreover, the plant would run through re-gasified liquefied natural gas (RLNG).
The bench mark KSE 100 index made an intraday high of 31,592. Index remained in red zone the entire session and made a low of 31,272.The index closed at 31,433 down by 131 points.
Market participation for 100 indexes clocked at 88.55.million shares and all shares by 124.23 million shares. Major contribution to total market volume came from K-Electric, Worldcal Telecom Limited, Maple Leaf Cement Factory Limited, Amreli Steels Limited, Fauji Fertilizer Bin Qasim Limited, Hi-Tech Lubricants Limited and International Steels Limited.
The market experts attribute the low volumes and stock meltdown to investors’ apprehensions over futures’ rollover week. Despite the government’s regurgitating claims and IMF’s endorsement of its policies on hacking current account deficit and improving foreign exchange reserves, selling pressure by foreigners raised concerns in the market.
On another note, within the money market, the State Bank of Pakistan (SBP) conducted an Open Market Operation in which it injected Rs.348.1 billion for 4 days at 13.26 percent. The overnight repo rate towards close of the session was 13.30/13.40 percent, whereas the 1 week rate was 13.32/13.38 percent. Rupee (PKR) closed today’s trading session relatively unchanged against the USD with the rate remaining stable at PKR 156.19.