Daily Times

Stocks at Pakistan Stock Exchange (PSX) posted some recovery on Wednesday, following two days of dismal performance, on the back of rising political uncertainty and speculations over upcoming Financial Action Task Force (FATF) review. On Wednesday, PSX benchmark Kse-100 index gained 137.61 points by the session’s closing, to clock at 40,144.29 index level.

The kse-100 index kick started the week on a bearish mode, and lost nearly 800 points in the two days, however, Wednesday’s modest recovery was a result of some buying activity witnessed during the session, as Value hunters cherry picked some over sold stocks at attractive rates, ahead of quarterly earnings season.

However, despite some modest gains, market witnessed receding volumes over escalating uncertainty over economic and political fronts. Investors continued to shy away from the market and speculate over upcoming Financial Action Task Force (FATF) review. Experts claim, equity investors will continue to monitor the developments over in the following weeks, after hopes of a probable exclusion of Pakistan from FATF grey list were dented, following Asia-Pacific Group (APG)’s recent move to retain 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.

Moreover, the market continues to witness a declining participation over escalating political noise, as Pakistan Democratic Movement (PDM), a coalition of nearly dozens of political parties have cobbled together by the opposition to challenge the PTI-led government. The mass movement and threats of agitation has sent investors packing, and lowering their stakes in the market.

During the day the benchmark KSE-100 Index moved in a narrow range, registering its intraday low at 39,845.77 after it lost 160.91 points but later pared its losses and touched an intraday high at 40,183.87 after the index gained 177.19 points.

The index volumes continues to dwindle and decreased from 195.24 million shares recorded in the previous session to 156.6 million shares , while the overall market volumes also declined from 290.14 million shares from the previous session to 232.8 million shares .

The volume chart was led Hascol Petroleum Limited followed by Unity Foods Limited and TRG Pakistan Limited. The scrips exchanged 24.03 million, 21.50 million and 19.61 million shares, respectively.

Sectors which lifted the index were Fertilizer with 21 points, Textile Composite with 19 points, Cement with 17 points, Power Generation & Distribution with 16 points and Oil & Gas Marketing Companies with 13 points. Among the scrips, most points added to the index was by Allied Bank Limited which contributed 17 points followed by Hub Power Company Limited with 14 points, Pakistan Petroleum Limited with 13 points, TRG Pakistan Limited with 12 points and Azgard Nine Limited with 11 points.

Sectors which continued to dent the index were Oil & Gas Exploration Companies with 10 points, Tobacco with 7 points, Insurance with 6 points, Food & Personal Care Products with 5 points and Paper & Board with 1 points. Among the scrips, most points taken off the index was by Pakistan Oilfields Limited which stripped the index of 25 points followed by Bank Al Falah Limited with 15 points, Adamjee Insurance Company Limited with 9 points, Muslim Commercial Bank with 7 points and Philip Morris (Pakistan) Limited with 7 points.