Daily Times

Bulls and bears continue to lock horns at Pakistan stock exchange as Kse-100 recorded another volatile session as index climbed 170.58 points at the session’s closing at 35,373.35 points. Investors’ participation continues to remain the major factor, as Optimism grew over fresh economic indicators which continue to sway investors’ sentiments.

Investors have abandoned bullish streak over hopes of revival of economic activity following reduction in covid-19 cases in the country, allowing authorities to de-seal most of the areas. Market participation was further elevated after announcement of fresh construction projects. Government of Pakistan selected two road infrastructure projects worth Rs300 billion for development through Public-Private Partnership (PPP). Meanwhile, Pakistan and China signed an agreement for the construction of Azad Pattan Hydel Power Project under China-Pakistan Economic Corridor (CPEC) project. Planning and Development Minister Asad Umar said, the $1.5 billion, 700 MW Azad Pattan hydropower project, is set to create over 3000.

The inauguration of development projects lifted cement and steel stocks. Moreover, institutions continue to be the major buyer in the market-injecting additional capital after the government last week banned institutional investments in national savings schemes to redirect them to other parts of the financial sector.

On Tuesday, the benchmark KSE-100 Index started the day on a positive note and gained 269.91 points to touch an intraday high at 35,472.68. The Kse-100 closed at 35,202.77 points on Monday. The total volume traded for the index increased from 229.10 million shares in the previous session to 241.07 million shares while the overall market participation also edge higher from 332.25 million shares in the previous session to 333.89 million shares on Tuesday. The volume chart was led by Pak Elektron Limited, followed by Hascol Petroleum Limited and Lotte Chemical Pakistan Limited. The scrips exchanged of 32.97 million, 31.52 million, and 24.13 million shares, respectively.

Sectors, which continue to lift the index, included Commercial Banks with 61 points, Automobile Assembler with 43 points, Cement with 41 points, Pharmaceuticals with 25 points and Oil & Gas Exploration Companies with 15 points.

Among the scrips, Indus Motor Company Limited led the contribution the index with 23 points followed by Bank Al Falah Limited with 20 points, United Bank Limited with 15 points, Highnoon Laboratories Limited with 12 points and Adamjee Insurance Company Limited with 11 points.

However, Sector wise, the index was let down by Power Generation & Distribution with 24 points, Fertilizer with 17 points, Food & Personal Care Products with 9 points, Tobacco with 5 points and Engineering with 4 points. While, among the scrips, most points taken off the index was by Hub Power Company Limited which stripped the index of 24 points followed by ENGRO with 16 points, NESTLE with 10 points, TRG Pakistan Limited with 9 points.

Global markets: Global stock markets lost Monday’s momentum as investors fretted over economic distress following cpovid-19 and subsequent lockdown. The sentiments dipped after European Commission said Eurozone economy will plunge 8.7 percent in 2020 due to the coronavirus crisis, in more pessimistic forecasts that do not see a complete rebound next year. Germany, the EU’s biggest economy, is expected to see a 6.3 percent contraction this year and 5.3% growth in 2021, while region’s second largest economy France is expected to contract by 10.6% in 2020. The economies of France, Italy and Spain are also forecasted to contract by more than 10% each.

European stocks took the heat from the economic data and spiraled down to shed Monday’s gains. Tech stocks led the regional losses, shedding 1.6% accumulatively denting the major bourses. UK’s FTSE-100 index edge lower by 1.49 %, while German DAX index slid by 1.14%. In France, benchmark index CAC-40 declined by 1%. In Asia, Stocks were mixed as investors treaded cautiously as recovery of the economic activity is expected to be bumpy. Hong Kong’s Hang Seng index fell 1.38%, as of its final hour of trading, while South Korea’s Kospi index dropped 1.09% to close at 2,164.17. In Japan, benchmark Nikkei 225 also slipped 0.44% to close at 22,614.69. However, following yesterday’s bull-run Chinese stocks bucked up the trend, as the benchmark Shanghai composite climbed 0.37% to about 3,345.34.

In U.S, Wall Street registered a cautious course as Stocks pulled back on Tuesday, due to profit taking. The Dow Jones Industrial Average lost 200 points lower, or 0.8%. The S&P 500declined 0.6% and the tech heavy Nasdaq Composite was flat.

Global Markets will also be paying attention to escalating trade tensions between the world’s two largest economies U.S and China. The fresh hostility followed U.S. President Donald Trump’s Chief of Staff Mark Meadows comments, claiming that Trump is considering executive orders targeting Chinese manufacturing and immigration, without giving further details at this stage. Moreover, investors will monitor resurgence of covid-19 as the fresh wave will further hamper economic activity and hopes of easing lockdown restrictions.