PSX closes seventh consecutive month in pink – Newspaper

KARACHI: The euphoria over the beautiful rally within the previous week that noticed the KSE-100 index recording features of a staggering 2,585 factors (9 per cent) marking it one of the best week in 10 years, couldn’t maintain within the outgoing week.

The shares retraced practically 62computer of the earlier features with KSE-100 index plunging 1,678 factors (5.35computer) and settling beneath the 30,000 stage at 29,672 factors.

By the way, the benchmark index closed unfavorable for the seventh consecutive month and misplaced 6.8pc throughout August which additionally was the heaviest month-to-month decline this 12 months.

The position of Pakistan on the ‘enhanced expedited observe up checklist’ by the Asia Pacific Group on Aug 23 put a dampener on the investor sentiment, with market closing the primary buying and selling session in pink.

Along with that, the potential divestment of the 10computer shares of the Pakistan Petroleum Ltd (PPL) and 7pc shares of the Oil Gasoline Growth Firm (OGDC), index heavy weights, constructed additional stress on the index, said analysts at AKD Securities. Geo-political tensions additionally took toll available on the market.

The main constructive for the week was authorities’s introduction of presidential ordinance to waive off 50computer of excellent the Authorities Infrastructure Growth Cess over dues from the CNG, energy, fertiliser and industrial gasoline customers, whereas permitting them the choice to avail non-cash settlement in opposition to excellent gross sales tax, subsidy and obligation disadvantage receivable from the federal government.

The event was primarily constructive, particularly for fertiliser sector and cushioned the general market dip. Another positives had been famous as overseas change reserves shored up 4pc through the month and sizeable participation in 12-month Treasury invoice indicated market expectations of rates of interest to have peaked out.

Common every day volumes clocked in at 124 million shares, down 29computer week-on-week whereas the typical worth traded stood at 29m down by 23computer WoW. Quantity leaders had been Lotte Chemical during which 53.63m shares modified palms adopted by Okay-Electrical with quantity of 34.86m shares, Maple Leaf Cement Manufacturing unit 29.68m shares, Unity Meals 25.22m shares and OGDC 21.55m shares. Overseas shopping for was witnessed in business banks at $2.0m and know-how and communication at $1.0m. On the home entrance, main promoting was reported by mutual funds at $13.5mn, whereas people purchased shares price $8.6m and banks $2.6m.

Sector-wise unfavorable contributions got here from oil and gasoline exploration firms down 519 factors, business banks 400 factors, oil and gasoline advertising and marketing firms 160 factors, cement 139 factors, and energy technology and distribution 216 factors. Scrip-wise laggards had been OGDC 247 factors, PPL 193 factors, Habib Financial institution Ltd 134 factors, Financial institution Al Habib Ltd 79 factors and Pakistan State Oil 63 factors.

Going ahead, the market is more likely to be influenced by variety of elements. A gathering of the Monetary Motion Process Drive is scheduled to be held in Bangkok on Sept 5 to debate the progress made by Pakistan in opposition to terror financing. The outcomes of the assembly will set the market’s path.

Investor confidence would even be swayed by the inflation figures for August for they’d decide the financial coverage outlook for the latter months, which in flip would impression the market behaviour. Progress on authorities’s plan to difficulty Rs200 billion sukuk to handle issues of energy sector may enhance sentiments whereas the deep reductions of the Pakistani shares to regional friends offers alternative to overseas traders to build up at present ranges.

Printed in Daybreak, September 1st, 2019

picture supply

le = window.adsbygoogle || []).push({});

free web hosting site

Leave a Reply

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker