Daily Times

The Pakistan Stock Exchange (PSX) led a directionless session as the benchmark KSE 100 Index parked in the red zone after a volatile session, closing at 40,724 level, 0.39% lower than the previous closing.

The Index traded in a range of 479.45 points or 1.17 per cent of the previous close, showing an intraday high of 41,163.81 and a low of 40,684.36.Of the 91 traded companies in the KSE 100 Index, 35 closed up 55 closed down, while 1 remained unchanged. Total volume traded for the index was 92.54 million shares. All Share Volume decreased by 18.29 Million to 127.80 Million Shares. Market Cap decreased by Rs.25.79 Billion.

Sector-wise, the index was let down by Power Generation & Distribution with 65 points, Oil & Gas Exploration Companies with 42 points, Oil & Gas Marketing Companies with 40 points, Investment Banks with 13 points and Cement with 6 points.

Among the companies most points taken off the index was by Hub Power Company Limited which stripped the index of 61 points followed by Muslim Commercial Banks with 38 points, Oil and Gas Development Company Limited with 30 points, Pakistan Petroleum Limited with 24 points and Pakistan State Oil with 22 points.

Sectors that tried to pick up the index were Tobacco with 11 points, Chemical with 10 points, Technology & Communication with 6 points, Insurance with 5 points and Fertilizer with 4 points. Among the companies most points added to the index was by Habib Bank Limited which contributed 43 points followed by Bank Alfalah Limited with 16 points, Pakistan Oilfields Limited with 14 points, Pakistan Tobacco Company Limited with 11 points.

Meanwhile, Credit rating agency Moody’s Investors Service gave the Pakistani banking system a stable outlook for the next 12 to 18 months.in its report Moody’s said “The sovereign credit profile has improved in recent months, benefiting the banks through their high exposure to government securities, which account for around 40 percent of their assets. The Moody’s said the economic activity in the country will be supported by the “ongoing infrastructure projects and improvements in power generation and domestic security”. It added that the government’s decision to depreciate the rupee and trade gains may raise private investment from the current low levels in the country. The press release noted “Operating conditions for Pakistan banks, although gradually improving, remain difficult amid tight monetary conditions – with the policy rate at 13.25% – and large government borrowing needs crowding out funding for the private sector.”