Daily Times

Stocks continued to be battered at Pakistan Stock exchange (PSX) as mounting political uncertainty in the country led bears to rule the roost at the bourse. On Wednesday, the benchmark index tumbled for the fifth consecutive session, breaching 44,000 level, as it closed at 43,691.68 level after losing another 531.23points by the closing bell.

On Monday, owing to constant selling pressure, the YTD (Year-to Date) return on benchmark index also turned negative for the first time in CY21 after today’s performance, showing a decline of 63 points or 0.15% as compared to the closing of the previous year.

Investors’ sentiments have dashed ever since the political temperatures have surge in the country following Senate upset, when Government’s candidate and finance minister Hafeez Sheikh lost to opposition alliance PDM led Yousaf Raza Gillani, following an apparent horse-trading.

During the trading session further pressure was added following Election Commission of Pakistan’s (ECP) decision, which rejected the PTI’s petition to block former Prime Minister Yousaf Raza Gillani’s Senate victory notification. However, the ECP has fixed a hearing to discuss the Ali Haider Gillani video scandal on March 22 and has issued notices to all parties to the case

On the economic front, investors continue to panic over the recent upsurge in inflation (primarily due to international crude oil prices) as they speculate about upcoming monetary policy and impact thereof on cyclicals. As a result, cement, steel and oil & gas marketing sectors continued to witness major attrition.

The volume at KSE-100 slightly receded from 231.66 million shares recorded in the previous session to 188.32million shares, while the all-share volumealso declinedfrom 492.31million shares recorded in theprevious session to 363.24 million shares. Market Capital decreased by 99.37 Billion, while total value traded also decreased by 2.29 Billion to Rs.21.14 billion.

The volume chart was led byTRG Pakistan Limited, Unity Foods Limited and Ghani Global Holdings. The scrips exchanged 38.16 million, 25.04 million and 19.18 million shares, respectively.

According to the National Clearing Company of Pakistan Limited foreign investors were net buyers ofworth $0.59 million worth of equities. Among local investors, Insurance Companies and Mutual Funds continued to lead the selling chart, and offloaded $3.67 million and $2.33 million worth of equities. However, banks and Individuals mopped up $3.04 million and $0.98million worth of equities.

During the session, sectors which dented he index were Technology & Communication with 130 points, Cement with 60 points, Fertilizer with 52 points, Power Generation & Distribution with 46 points and Oil & Gas Marketing Companies with 32 points. Among the scrips, the most points taken off the index was by TRG Pakistan which stripped the index of 76 points followed by Systems Limited with 52 points, Lucky Cement Limited with 43 points, Hub Power Company Limited with 35 points and HabibBank Limited with 31 points.

However, sectors propping up the index were Insurance with 7 points, Paper & Board with 3 points and Leather & Tanneries with 2 points. Among the scrips, the most points added to the index was by United Bank Limited which contributed 12 points followed by Meezan Bank Limited with 11 points, Adamjee Insurance Company Limited with 11 points, Bank Al HabibLimited with 10 points and Fauji Cement Company Limited with 8 points.