Daily Times

Uncertainty continues to rattle Pakistan Stock exchange as benchmark KSE-100 index falls flat, closing only 19 points higher in Wednesday’s session to clock at 31,242 points, i.e. 0.06% higher than the previous session.

Kse-100 witnessed early gains on optimism over federal government’s announcement to ease in lockdown for certain sectors. The announcement picked up market sentiments as the easing of lockdown will resuscitate economic activity. However, the index failed to sustain the initial momentum after oil prices fell to their lowest level in 18 years. US WTI crude oil price slumped to $19.20 per barrel on Wednesday to historic low, despite largest output cut deal agreed by OPEC+ oil producing nations.

International Energy Agency (IEA) projected global demand will fall by a record amount in 2020 amid covid-19 pandemic led slowdown of economic activity. IEA noted Global oil demand is expected to drop by 9.3 million barrels per day for the year. It added In April, global oil demand is expected to decline by 29 million barrels per day from a year ago, to levels last seen in 1995. IEA pointed the measures announced by OPEC + nations won’t balance the market immediately. It added by lowering the peak of the supply overhang and flattening the curve of the build-up in stocks, they help a complex system absorb the worst of this crisis, whose consequences for the oil market remain very uncertain in the short term.

The overall trading volumes improved from 130.19 million in the last session to 185.45 million. The volume chart was led by Maple Leaf Cement Factory Limited, followed by Hascol Petroleum Limited and Fauji Cement Company Limited. The scrips had exchanged 22.51 million, 10.92 million and 9.56 million shares, respectively.

Sectors that propped up the index included investment Banks with 60 points followed by Cement with 41 points, Fertilizer with 26 points, Pharmaceuticals with 23 points and Engineering with 13 points. Among the companies, most points added to the index was by Dawood Hercules Corporation Limited which contributed 59 points followed by Lucky Cement Limited with 18 points, Fauji Fertilizer Company Limited with 14 points.

While, sectors that pulled down the index include Oil & Gas Exploration Companies with 107 points, Commercial Banks with 36 points, Food & Personal Care Products with 21 points, Automobile Assembler with 11 points and Power Generation & Distribution with 8 points. Among the companies, most points taken off the index was by Oil &Gas Development Company Limited which stripped the index of 37 points followed by Pakistan Petroleum Limited with 35 points, Pakistan Oilfields Limited with 29 points, NESTLE with 25 points.