Home Money & Commodities Stocks fall to 203 points raising concern

Stocks fall to 203 points raising concern

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source: Dawn

The stocks on Friday with the KSE-100 index falling down to 202.91 points (0.60 per cent) arrived at 33,672.49.

Following the higher interest rates, likely to be announced by 16th July in the State Bank Monetary policy rather than towards the end of month, the market was utterly shaken.
This uncertainty and fragility of the economy frightened the investors. The SBP’s reserves dived by 2.6pc to $7.1bn the previous week showing clear proof of import cover of 1.4 months.

Furthermore analysts also claimed that a fall in auto sales showed signs of economic slowdown. Analyst Ahsan Mehanti said “Surge in local fertiliser prices and renewed hopes over positive outcome of prime minister’s visit to the US invited mid-session support,” However, selling was rigorous at the last closing hour of the market as investors were reluctant to hold positions ahead of the weekend.

Foreign investors still continued their stock picking worth $0.67 million but remained adequately concerned over the depreciation of rupee. Foreign inflows in equity market show $59.6m as of 2019 to date.

The shares increased by 40pc to 55.3m as against 39.5m, although traded value also hiked up by 58pc to $14.3m, from $9.1m.

Moreover, significant stock contribution came from the following, K-Electric, Maple Leaf Cement, Bank of Punjab, Escorts Investment Bank and TRG Pakistan, all of which formed 35pc of total turnover.

Stocks that contributed poorly included cement, down 40 points, power 28 points, oil and gas marketing companies 27 points, exploration and production 18 points and autos 18 points.

Lastly, stocks that were of significant disappointment included Pakistan State Oil, fell by 21 points, Engro Corporation 15 points, Hub Power 15 points, Pakistan Oilfields 12 points and DG Khan Cement 11 points. Shares that had an increase in prices included Fauji Feriliser, higher by 30 points, Engro Fertiliser 13 points, United Bank 10 points, Habib Bank 9 points and Meezan Bank 3 points.