A bearish spell begins in the stock market

KARACHI: Bears dominated the Pakistan Stock Exchange (PSX) for the fourth consecutive session on Thursday amid growing concerns about the depreciation of the rupee and the continuing wave of foreign selling.

According to Arif Habib Ltd, investors remained under pressure despite PSX offering attractive valuations in terms of low P/E multiples and high dividend yield. “Tech stocks remained in the spotlight throughout the day as traders placed bets on high beta stocks to signal quick trading gains,” she said.

As a result, the KSE-100 index lost 427.95 points, or 0.96 percent, to close at 43,935.75 points.

Market participation decreased by 37.1% to 195.2 million shares while the value of shares traded decreased by 35.2% to $48 million.

The sectors that scored the highest number of points from the benchmark index included commercial banks (139.47 points), power generation and distribution (59.18 points), fertilizers (50.18 points), cement (48.17 points), and pharmaceuticals (43.11 points).

Shares that contributed significantly to the trading volume included TPL Properties Ltd (16.32 million shares), Byco Petroleum Ltd (12.23 million shares), The Hub Power Company Ltd (9.5 million shares), WorldCall Telecom Ltd (8.39 million shares) and TRG Pakistan Ltd . (7.94 million shares).

Shares that contributed positively to the index included Ghani Glass Limited (7.43 points), Systems Limited (5.29 points), National Refinery Limited (4.73 points), Beko Petroleum Limited (4.64 points) and Millat Tractors Limited (3.96 points).

Shares that contributed negatively included HP Power Limited (52.96 points), Habib Bank (46.49 points), Lucky Cement (29.74 points), United Bank Limited (29.38 points) and Searle Ltd. (25.01 points).

The stocks that recorded the largest decline in percentage terms included The Searle Company Ltd, which fell 5.06%, followed by Lotte Chemical Pakistan Ltd (4.34pc), National Bank of Pakistan Ltd (4.06pc), ICI Pakistan Ltd (3.25pc) and The Company HP Power Ltd (3.12 pieces).

Foreign investors remained net sellers, offloading shares worth $9.5 million on a net basis.

Posted in Dawn, November 26, 2021

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