Daily Times

Bears continued to wreak havoc at Pakistan Stock Exchange (PSX), as investors have struggled to gain a firm foothold ever since the benchmark KSE-100 index slipped from the recent high of 47,000 points, as market is being held hostage to the flare-up in Covid-19 infection cases that has forced fresh rounds of lockdown across the country.

Owing to weak economic indicators and Covid-19 fears, on Monday the kse-100 index lost another 752 points by the closing bell to clock at 43,548.21 level.

Investors have remained muted over positive exports data, which posted an increased to a ten-year high at $2.345 billion during March and appreciation of Rupee, which has led the chart of the world’s best-performing currencies in the first three months of CY21 as it closed on a stronger note with an appreciation of 4.43% against the US Dollars.

But, as per the market analysts, owing to huge leverage positions in technology and refinery stocks, and declining prices of pertinent stocks made the investors revisit their earlier investment decisions, resulting in a huge selling pressure at the index. Netsol Technology continued to hit its lower circuit while Attock and National refineries also ended on heavy losses during the session.

Investors also seem perturbed by IMF conditionalities (post resumption of Program) that hints of the rising cost of production for the industries as well as withdrawal of tax exemptions that has seen no end unless the matter is deliberated and finalized in the Finance Act. Business community has already urged the government to immediately renegotiate the International Monetary Fund (IMF) programme, have warned that Front-loaded tax targets without the Federal Board of Revenue’s (FBR) capability to broaden the tax base, knee-jerk withdrawal of investment incentives, higher utility costs to manage circular debt will sap growth of the fragile economy and threaten jobs.

During the session, the benchmark KSE-100 Index registered its intraday low at 43,471.19 level after it lost 829.76 points, and intra-day high at 44.431.24 after it gained 130.29 points.

The volume at KSE-100 receded from 140.76 million shares recorded in the previous session to 139.2 million shares, however the all-share volume increased from 266.85 million shares recorded in the previous session to 302.8 million shares.

Market Capital decreased by Rs.133.40 billion, while total value traded decreased by 0.96 billion to Rs.13.42 billion.

The volume chart was led by TRG Pakistan Limited followed by Dost Steels Limited and Silkbank Limited. The scrips exchanged 24.56 million, 24.4 million and 20 million shares, respectively.

According to the National Clearing Company of Pakistan Limited (NCCPL) foreign investors were net buyers of $0.63 million worth of equities.

Among local investors, Banks and Companies led the buying chart and mopped up $1.4 million and $1.2 million worth of equities.

However, Individuals and Mutual Funds led the selling chart and offloaded up $2.1 million and $1.6 million worth of equities.

During the session, sectors which dented the index were Technology & Communication with 142 points, Commercial Banks with 136 points, Cement with 88 points, Oil & Gas Exploration Companies with 60 points and Textile Composite with 48 points. Among the scrips, the most points taken off the index was by TRG Pakistan which stripped the index of 94 points followed by Systems Limited with 47 points, Habib Bank Limited with 42 points, Lucky Cement Limited with 41 points and United Bank Limited with 33 points.

However, sectors which continued to lift the index were Fertilizer with 24 points and Miscellaneous with 1 point. Among the scrips, the most points added to the index was by ENGRO which contributed 44 points followed by Kot Addu Power Company with 5 points, EFU General Insurance Limited with 3 points, Honda Atlas Cars (Pakistan) Limited with 1 point and Abbott Laboratories (Pakistan) Limited with 1 point.