Daily Times

Kse-100 index took a dip on the first trading day of the week, after a negative new-flow on the day triggered panic selling. On Monday, Kse-100 lost 588.61 points by the session closing to clock at 40,209.82 index level.

On Monday, the market witnessed a rollercoaster ride, after the index failed to sustain positive momentum witnessed during the early hours, which followed previous week’s overall accumulation of over 2,261 points since touching the bottom point on October 6th, 2020. During the session the market cemented its gains by adding over 200 points during the early hours, primarily following Country’s Central Bank’s statement, stating that Pakistan’s foreign remittances from Pakistani workers employed abroad increased to $2.3 billion in September, a 31.2% rise Year-on-Year (YoY) and up 9% compared to the previous month. Pakisatan’s remittances remained above $2 billion for a fourth consecutive month, capping a higher than expected inflow of finances in the first quarter of FY2020-21 for the South Asian nation, which has struggled with current account deficits and a depreciating currency.

The market, however reversed its earlier gains, and went into a tailspin over mounting uncertainty surrounding the upcoming Financial Action Task Force (FATF) review. The Kse-100 witnessed panic selling, after Asia-Pacific Group (APG) on Money Laundering revealed that it has retained Pakistan on its “Enhanced Follow-Up” list for a meagre progress on technical recommendations of the Financial Action Task Force (FATF) to fight money laundering and terror financing. “Pakistan will remain in enhanced (expedited) follow up, and will continue to report back to the APG on progress to strengthen its implementation of AML/CFT measures,” concluded the APG in its 12-page report. The APG decision dented Investors’ hopes of a probable exclusion of Pakistan from FATF grey list, and led investors to reduce their positions in the market.

Moreover, the rise in political instability continues to haunt equity investors ever since PML-N president and Leader of the Opposition in the National Assembly Shehbaz Sharif was arrested by the National Accountability Bureau (NAB), followed by oppositions’ call for agitation. However, the tensions were ratcheted on Monday, after Supreme Court issued a notice to Prime Minister Imran Khan for attending a ceremony of the PTI-affiliated Insaf Lawyers Forum (ILF) held in Islamabad last week.

During the day the index remained volatile, as kse-100 index recorded its intra-day high at 41,047.46 after gaining 249.03 points, but later reversed its position, and touched its intra low at 40,149.78 after losing 648.65 points. The index volumes decreased from 240.64 million shares recorded in the previous session to 217.24 million shares, however, the overall market volumes increased from 358.82 million shares from the previous session to 377.65 million shares,

The volume chart was led by Power cement Limited, followed by Hascol Petroleum Limited and TRG Pakistan Limited. The scrips exchanged, 50.58 million, 41.84 million and 23.44 million shares respectively.

Sectors which dented the index were Oil & Gas Exploration Companies with 98 points, Cement with 85 points, Commercial Banks with 72 points, Oil & Gas Marketing Companies with 50 points and Power Generation & Distribution with 48 points. Among the scrips, most points taken off the index was by Oil &Gas Development Company Limited which stripped the index of 45 points followed by Habib Bank Limited with 38 points, Hub Power Company Limited with 38 points, TRG Pakistan Limited with 35 points and Pakistan Petroleum Limited with 32 points.

However, scrips which continued to resist the pressure on the index were Azgard Nine Limited which added most points to the index and contributed 5 points followed by Bank Al Habib Limited with 4 points, FrieslandCampina Engro Pakistan Limited with 4 points, Millat Tractors Limited with 4 points and AGP Limited with 4 points.