Daily Times

Pakistan Stock Exchange (PSX) succumbed to selling pressure on Thursday, as investors responded to fresh Covid-19 lockdown measures. During the session, the benchmark index Kse-100 plunged 632.77 points by the session end to breach the psychological barrier of 41,000 level to close at 40,564.55 index level.

During the session, the index struggled to attract investors’ attention, as the lack of fresh triggers, coupled with rising political uncertainty and resurgence of Covid-19 in the country weighed on investors’ sentiments. The market continued to discount the Covid-19 vaccine news, as short lived optimism has faded due to fresh round of Covid-19 lockdown, triggering fears of another cessation of economic activity. The National Command and Operation Centre (NCOC), Pakistan’s nerve Centre on Covid-19 has recommended early and extended winter vacations for students amid a rise in the Covid-19 positivity ratio at educational institutions.

Issuing guidelines regarding marriage ceremonies, the NCOC said on Wednesday that only outdoor events with a maximum of 500 people are allowed from November 20. In its statement, it said “The forum was told that the disease had increased three-fold since the NCOC recommended a ban on large public gatherings and outdoor activities on October 12 and November 3 to the National Coordination Committee (NCC) for its final decision. However consensus by all stakeholders is awaited,”. Meanwhile, several localities in Lahore, Rawalpindi and Multan have been declared as coronavirus hotspots and put under lockdown with immediate effect, according to notifications from the Punjab Primary and Secondary Healthcare Department.

During the session, the selling pressure was witnessed across the board, with major impact coming from exploration & production and banking sectors. Moreover, cement sector also continued to take the hit over the expectation of a decline in monthly despatches, whereas fertilizer, oil & gas marketing and banking sectors remained subdued due to muted investor sentiment.

At kse-100, the index volumes decreased from 129.69 million shares recorded in the previous session to 167.11 million shares, while the overall market volumes were recorded at around 328.30 million shares, increasing from the previous session’s volumes of 244.29 million shares.

The volume chart was led by Unity Foods Limited followed by Soneri Bank Limited and TRG Pakistan Limited. The scrips exchanged 29.70 million, 22.54 million and 19.63 million shares, respectively.

Sectors that dented the index were Commercial Banks with 134 points, Oil & Gas Exploration Companies with 117 points, Cement with 83 points, Oil & Gas Marketing Companies with 78 points and Power Generation & Distribution with 47 points. Among the scrips, most points taken off the index was by Habib Bank Limited which stripped the index of 43 points followed by Oil & Gas Development Company Limited with 43 points, Pakistan Petroleum Limited with 41 points, Hub Power Company Limited with 38 points and United Bank Limited with 35 points.

However, the sectors which resisted the pressure were Glass & Ceramics with 3 points, Leasing Companies with 1 points and Close – End Mutual Fund with 1 points. Among the scrips, most points added to the index was by Systems Limited which contributed 31 points followed by Atlas Honda Limited with 5 points, Ghani Glass Limited with 3 points, Murree Brewery Company Limited with 2 points and Bank Al Falah Limited with 1 point.