Daily Times

Profit Taking struck Pakistan Stock Exchange (PSX) to fall flat on Thursday, as Kse-100 index ended its three day winning streak after posting 1,240.51 points gain. During the session, the benchmark kse-100 witnessed a choppy session and gained mere 20.34 points by the closing bell to clock at 42,047- level.

On December 3nd, earlier trading kicked off on a positive note and the benchmark index climbed steeply as a host of positive triggers encouraged investors to pour money into the market, however, the index failed to sustain its momentum and reversed earlier gains to fall flat, after investors resorted to profit taking.

On Thursday the stocks came off of strong performance recorded in the previous sessions as market sentiments were swayed by Federal Board of Revenue (FBR)’s decision to collect capital gains tax (CGT) on stock trading once a year, instead of collecting the tax every month. The news, in particular, encouraged market participants to make fresh investment and kept stock trading in the positive territory throughout the day.

However, the market sentiments continue to account for rising Covid-19 cases in the country as Pakistan’s number of active COVID-19 cases surged past 51,000 as according to the latest figures from the National Command and Operations Centre (NCOC), Pakistan reported 3,499 new infections on Thursday, raising the total tally to 406,810 as active cases climbed to 51,654.The NCOC data showed that the pandemic’s pace in Pakistan has quickened as the tally crossed 400,000 on December 1 with at least 29,881 new cases reported in the last 10 days only. Investors fear that the escalating pace of virus spread threatens another wave of lockdown in the country which may halt the economic activity in the country. Moreover, exacerbating commotion on political front in the country is also taking toll on investors’ sentiments. Opposition led Pakistan Democratic Movement (PDM) has been giving deadlines for the PTI led government’s fall, as it holds nationwide rallies and demonstrations.

During the session, the Index registered its in-traday high at 42,412.51 after it gained 385.13 points. However, it succumbed to selling pressure post afternoon, and touched its day low at 42,009.30 after losing 18.08 points. The volume at kse-100 stood at 240.18 million shares, while the overall volumes closed at 420.32 million shares.

The volume chart was led by TRG Pakistan Limited followed by Maple Leaf Cement Factory Limited and Aisha Steel Mills Limited. The scrips exchanged 35.24 million shares, 30.97 million and 29.69 million shares, respectively. During the day, foreign investors remained net buyers of worth $6.58 million worth of equities. However, on the investment table the sell chart was led by Companies with $11.97 million worth of equities, followed by Banks with $1.8 million worth of equities.

Sectors which lifted the index were Fertilizer with 17 points, Cement with 13 points, Technology & Communication with 12 points, Oil & Gas Exploration Companies with 9 points and Commercial Banks with 7 points. Among the scrips, the most points added to the index was by Systems Limited which contributed 27 points followed by Lucky Cement Limited with 17 points, Muslim Commercial Bank with 15 points, Fauji Fertilizer Company Limited with 15 points and Pakistan State Oil with 12 points.

However, sectors which continued to added pressure to the index were Pharmaceuticals with 12 points, Chemical with 8 points, Textile Composite with 7 points, Power Generation & Distribution with 6 points and Food &Personal Care Products with 6 points. Among the scrips, the most points taken off the index was by TRG Pakistan Limited which stripped the index of 12 points followed by Millat Tractors Limited with 12 points, The Searle Company Limited with 11 points, Hbib Bank Limited with 8 points and Colgate-Palmolive (Pakistan) Limited with 7 points.

Global Markets: Upbeat Economic data lifts Stocks

Global stocks edged higher on Thursday, extending their recent record-setting run as better-than-expected economic data and Covdid-19 Vaccine hopes boosted sentiment.

In Asia, stocks extended its gains on Thursday, as investors continue to rally on upbeat China’s services data, indicating a revival of economic activity in the world’s second largest and Asia largest economy. The Caixin/Markit services Purchasing Managers’ Index for November released Thursday came in at 57.8, rising from October’s reading of 56.8. The PMI readings above the 50 mark signify expansion, while those below that level represent contraction. PMI readings are sequential and show month-on-month expansion or contraction.Earlier this week, China’s official PMI data showed that services sector activity expanded for the ninth straight month. The official non-manufacturing PMI reading for November was 56.4, as compared with 56.2, according to data from the statistics bureau.

Among the major bourses, South Korea’s Kospi index led the regional gains and rose 0.76% to close at 2,696.22. Meanwhile, following the regional trend, Hong Kong, Hang Seng index also advanced 0.74% to close at 26,728.50, while Japan’s Nikkei 225 remained muted throughout the session and closed at 26,809.37, above the flat line. However, Chinese stocks were mixed on the day, but benchmark index Shanghai composite closed 0.21% lower to about 3,442.14.

European stocks, however, remained mixed throughout the trading session, as investors waited for more certainty over Covid-19 Vaccine approval. During the day, the pan-European Stoxx 600 inched 0.2% below the flat line by mid-afternoon, chemicals and healthcare stocks also shed 0.9% while the travel and leisure sector bounced 4% higher. Among the major markets, CAC-40 in France and Germany’s DAX edged lower, while UK’s FTSE-100 showed some resistance and clocked higher.

In U.S, Wall Street witnessed a sentiment boost as investors reacted to positive unemployment data. First time claims for unemployment insurance totaled 712,000 last week, lower than an estimate of 780,000 from economists surveyed by Dow Jones. Jobless claims also fell for the first time in three weeks as the labor market showed resilience even in the face of a worsening pandemic. Meanwhile, investors also closely followed the ongoing negotiations in Washington, as House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer issued a joint statement calling on Republicans to work with them on another round of coronavirus relief funding, using a bipartisan proposal from Senate moderates as a starting point.

During the early trading hours, the 30-stock Dow Jones Industrial Average climbed 130 points, boosted by a 5% jump in Boeing shares, while the S&P 500 rose 0.3% after hitting a second record closing high in a row in the previous session. Meanwhile, the tech-heavy Nasdaq Composite gained 0.6% to a fresh all-time high.

The U.S stocks were coming off of their best performance in November, as the 30-stock Dow rallied 11.8%, posting its best one-month performance since January 1987. The S&P 500 and Nasdaq Composite also rose 10.8% and 11.8%, respectively, for their strongest monthly advances since April.