Low trading volumes and absence of investors’ interest led KSE-100 to fall flat as stocks traded within a narrow range for the second consecutive session. The index looked to find direction as range bound trading continued on trading floors replicating the previous trading session- concluding the day at 43,207 points level, with a loss of 11 points.
KSE-100 started the session on a positive note, adding over 200 points in early trade. However, later on, it lost impetus as investors chose to remain sidelined on account of profit booking. Index opened at 43,272.46, touched its intraday high at 43,468.22 during the initial trading hours. It then swung to its day’s low at 43,095.41 after losing 123.26 points. The index settled flat at 43,207.04.The KMI-30 Index inched up by 12.60 points to end day at 70,654.16, whereas the KSE All Share Index declined by 47.54 points, closing at 29,973.44.
The overall trading volumes decreased by 32pc on a daily basis and were recorded at 249.67 million as All Share Volume decreased by 116.47 Million. Market Cap decreased by Rs.12.81 Billion.
The volume chart was led by The Bank of Punjab, followed by TRG Pakistan Limited and TPL Corp Limited. The scripts had exchanged 18.02 million, 16.48 million and 14.61 million shares, respectively. Sectors that propped up the index included fertiliser gaining 48.28 points, banking adding 21.51 points and investment banking picking 16.85 points. The most points added to the index was by ENGRO which contributed 45 points followed by United Bank Limited with 34 points, Hub Power Company Limited with 23 points, Dawood Hercules Corporation Ltd with 20 points and Engro Fertilizers Limited with 7 points.
On the other hand, Sectors that pulled down the index included oil & gas exploration losing 52.94 points, chemical down by 21.08 points and cement cropping 19.54 points. Among companies the most points taken off the index was by Pakistan Petroleum Limited stripping the index of 27 points followed by Oil and Gas Development Company Limited with 23 points, Sui Northern Gas Pipelines Limited with 16 points, Colgate Palmolive (Pakistan) Limited with 13 points..
Meanwhile, The State Bank of Pakistan (SBP) has imposed a cumulative fine worth Rs219.136 million on five commercial banks for violating its regulations in December.
These banks include Bank Alfalah, National Bank of Pakistan (NBP), MCB Bank, Habib Metropolitan Bank, and Summit Bank.
Bank Alfalah faced the highest fine, at Rs96.095 million for procedural violations in Know Your Customer (KYC) and Combating the Financing of Terrorism (CFT). According to the State Bank, the bank was advised to conduct an internal inquiry on the violation of regulatory requirements. The bank was also advised to strengthen its process related to KYC and customer due diligence (CDD).
MCB faced the second-highest fine, at Rs49.499 million for violations in foreign exchange (FX) operations.
Additionally, Habib Metropolitan Bank faced Rs34.578 million and NBP was fined Rs21.544 million; both for violations in CDD and KYC. Both banks were advised timelines to bring improvements in its systems. Summit Bank was fined Rs17.422 million for violations in FX operations. The SBP has recently started making public the fines it imposed on commercial banks. This most recent fine has come on the heels of increased regulation and fines imposed by the SBP in the last few months, through its offsite supervision and enforcement department. Earlier in October 2019, SBP penalised HBL with Rs35.6 million fine “due to major flaws in the foreign trade operation services and customer due diligence (CDD)”.
In September 2019, the SBP fined three banks a total of Rs133.3 million; Meezan Bank Ltd, Askari Bank Ltd, and MCB Islamic Bank Ltd. The penalty was imposed over violations by all three banks in Know Your Customer (KYC) and CDD.
In Asia: Stock markets in the region traded mixed amid speculation over expected trade deal signing on January 15th between Unite States and China.
Ahead of the signing, the U.S treasury department also removed China from the currency manipulator list more than five months after the U.S. Treasury placed the country on it, saying that Beijing has been keeping the yuan artificially weaker. Even before it was removed from the list, the yuan had been appreciating and jumped to a five-month high last week.
The Nikkei 225 in Japan climbed 0.73% to close at 24,025.17 after Japanese markets returned from a public holiday on Monday. Shares of technology conglomerate Softbank surged 3.51%.In South Korea index gained 0.43% to close at 2,238.88. In China ,however the Shanghai composite lost 0.28% to close at 3,106.82.Hong Kong’s Hang Seng index also declined 0.28% during the last hour of trade. Hong Kong stocks reversed gains to end lower on Tuesday as investors pocketed gains following a strong rally underpinned by optimism towards the signing of a Phase 1 Sino-U.S. trade deal. In a new relief package Hong Kong’s embattled leader Carrie Lam pledged $1.3 billion to inject stimulus in the economy as it grapples with months of anti-government protests that have hurt business confidence in the city.
Regional stock markets lacked rally as investors hold on to see global economy regaining its momentum, after years of trade war and recent Middle East crisis -shadowing the stocks and dampening confidence.