Thursday, May 26, 2022

Stocks extend losses as rollover adjustments weigh

Stocks extended losses on Tuesday tracking world markets ahead of a tougher rollover week, where amount to be settled is the highest ever, i.e., Rs18 billion, dealers said.

Pakistan Stock Exchange’s (PSX) KSE-100 shares index lost 0.98 percent or 426.82 points to close at 42,906.94 points, while volumes increased to 561.855 million shares, compared to 516.465 million shares in the previous session.

KSE-30 shares index followed suit with a low of 0.92 percent or 166.1 points to end at 17,857.10 points.

Salman Ahmad, head of institutional sales at Aba Ali Habib securities, said as expected the rollover week quashed the share values as the amount to be adjusted was the highest ever.

“Global markets have registered fresh declines because of the second wave, which is being termed more disastrous and is resulting in lockdowns in several European countries, slowing down economies that had just started coming out of woods,” Ahmad added.

Muhammad Saeed Khalid, head of research at Shajar Capital, said despite higher C/A surplus numbers for 5MFY21, the market remained negative during the session.

The index was under selling pressure mainly owing to year-end results where investors preferred to booked capital gains, he said.

“We have seen aggressive selling pressure in the tech stocks, regardless of the fact that the export of services numbers have improved in the 5MFY21,” Khalid added.

Trading activity was recorded in 411 active scrips, of which 103 moved up, 289 down, and 19 stayed as they were.

Faizan Munshey, associate director at KASB Securities, said, the market continued its downward momentum after investors booked profits to make the most of the rally that had led some of the sectors to get into an overbought zone.

Another factor that dampened sentiments was the futures rollover, which led to heavy selling by weak holders, he said.

“We expect volatility to remain high in the coming sessions amid a shorter rollover week”, said Faizan adding, “However, the market is expected to remain bullish in the medium to long term, backed by the expected progress in economic activity in 2021”.

Ahsan Mehanti, senior analyst at Arif Habib Corporation, said bearish activity at PSX was a result of global crude oil and capital markets slump.

Early support came from G20 and Paris Club’s rescheduling of over Rs272 billion loans, while oil stocks took a sound battering late in the session.

Foreign outflows, over-leveraging in future rollover week, and investor concerns over ongoing political uncertainty played against the stocks, Mehanti added.

Gillette Pakistan, securing Rs36.55 to close at Rs523.96/share, and Shell Pakistan, strengthening Rs15.58 to finish at Rs266.46/share secured highest gains in the day.

Rafhan Maize, down Rs298 to close at Rs9,002/share, and Service Industries Limited, losing Rs48.99 to close at Rs875.88/share, were the worst losers in terms of value.

WorldCall Telecom led volumes with 70.792 million shares, but lost Rs0.03 to end at Rs1.14/share. Hascol Petrol was the least traded scrip of the day with 13.158 million shares and shed Rs0.5 to end at Rs14.21/share.

Source: The News

Latest News

Related News

Leave a reply

Please enter your comment!
Please enter your name here