KARACHI: In line with the selloff in global equity markets, the local bourse witnessed profit-taking, as Covid cases keep on increasing, leading to more stringent lockdowns, dealers said on Wednesday.
An analyst at Pearl Securities said the market witnessed a bearish session and closed in the red zone due to the substantial rise in the Covid cases.
“Furthermore, [the] central bank has decided to maintain the policy rate at 7 per cent to support the economic growth through accommodative monetary policy as the deadly virus still persists. Despite this, the IMF [International Monetary Fund] has reassured Pakistan’s stronger economic activity and kept the global growth forecast largely unchanged at 6 per cent for FY21 and 4.9 per cent for FY22.”
The Pakistan Stock Exchange KSE-100 shares index shed 0.7 per cent, or 368.96 points, to close at 47,318.03 points. The KSE-30 shares index shed 0.81 per cent, or 155.31 points, to close at 18,974.3 points.
As many as 432 scrips were active, of which 91 advanced, 329 declined and 12 remained unchanged. The ready market volumes stood at 365.77 million shares, compared with the turnover of 432.62 million shares in the last trading session.
Ahsan Mehanti at Arif Habib Corp said that the stocks closed bearish on global equity selloff. “Investors’ concerns over [the] economic uncertainty, impact of [the] pandemic wave on exports, growth and [the] weak rupee, played a catalytic role in the bearish close.”
Muhammad Mubashir at JS Global Capital said that the local bourse opened on a positive note and went on to touch an intraday high of +188 points in the initial hours. However, after trading sideways for most of the day, a sharp across-the-board selloff was seen closer to the end of the session.
“On the economic front, the IMF has revised upward the GDP growth projection for Pakistan to 3.9 per cent for FY21 and the SBP maintained the policy rate at 7 per cent to support economic growth. Going forward, in [the] light of the rising Covid-19 cases and stricter restrictions, we recommend investors to adopt a buy on dips strategy in banks and E&Ps.”
The companies, which reflected the highest gains included Colgate Palmolive, up Rs93.98 to close at Rs2,787.98/share; and Gatron Industries, up Rs35.50 to close at Rs563/share.
The companies that reflected the most losses included Wyeth Pakistan, down Rs44.85 to close at Rs2,031.15/share; and Mehmood Textile, down Rs39.81 to end at Rs504/share.
The highest volumes were witnessed in WorldCall Telecom with a turnover of 40.37 million shares. The scrip shed 17 paisas to close at Rs3.57/share; followed by Byco Petroleum with the turnover of 26.89 million shares. It shed 16 paisas to close at Rs9.9/share. Telecard Limited was the third with the turnover of 13.22 million shares. It shed 21 paisas to finish at Rs14.86.