PSX takes nosedive, plunges record 1105.49 points

A total of 144,282,360 shares were traded compared to the trade 85,597,900 shares.

KARACHI (Dunya News) – Bears maintained their grip at the Pakistan Stock Exchange (PSX) as the index saw a further decline of 1105.49 points or 2.82pc to close at 39,143.73 points as compared to 40,249.22 points on the last working day.

A total of 144,282,360 shares were traded compared to the trade 85,597,900 shares during the previous day, whereas the value of shares traded during the day stood at 5.508 billion as compared to Rs3.579 billion during last trading day.

Total 345 companies  transacted shares in the Stock Market today, out of which 44 recorded gain and 285 sustained losses whereas the share price of 16 companies remained unchanged.

The three top traded companies were, Hascol petrol with a volume of 14,356,500 shares and price per share of Rs20.96, Unity Foods Ltd with a volume of 11,547,500 and price per share of Rs13.27 and K-Electric Ltd with a volume of 10,629,500 and price per share of Rs3.91.

Nestle Pakistan recorded the maximum increase of Rs375 per share, closing at Rs7800 while Rafhan Maize was runner up with the increase of Rs300 per share, closing at Rs7000.

Unilever Foods recorded maximum decrease of Rs200 per share, closing at Rs7300 whereas Pak Tobacco decreases Rs81.01 per share closing at Rs1914.28.

In the previous week, the market struggled for its sustainability as confusion and uncertainty surrounded potential investors until Friday when the FATF maintained Pakistan’s status in its grey list of countries with inadequate controls to restrict money laundering and terror financing. These concerns together with uncontrollable spread of coronavirus that has adversely affected the Asian economy, in particular, have restricted the stock market to grow.

Among other persisting factors were the large suspension of imports from China, which had been hammering the stock market, and strife political disagreements between coalition parties in the government until some of them were settled in meetings with the ruling PTI.

On a positive note, investors were relieved as the prime minister announced no change in gas and electricity prices until at least the next budget against rumours of an earlier increase. Moreover, the foreign exchange reserves continued to rise for the 20th week, crossing the $12.5bn mark.

Going forward, market gurus expected the bourse to trade sideways to positive as they react to the Friday decision of the FATF review. Further, the approval of IMF’s third tranche and ban imposition by the government on export of essential food items so as to control rising inflation along with deferment of hikes in utility rates till Jun’20 is also expected to impact the market trend.

Investors may also be encouraged by the improvement in macroeconomic indicators such as the current account deficit shrinking by 72pc in 7MFY20. The market may also take cue from the developments such as the planned visit of China’s president to Pakistan and the conclusion of the US-Taliban peace talks.

Since mid-January, investors have been adopting extremely cautious behaviour after more headlines cover mounting deaths due to coronavirus taking full hold, a plunge in global crude oil prices, unchanged main policy rate by the State Bank of Pakistan at 13.25 percent for the next two months and political uncertainty in the country.

The SBP in the latest monetary policy statement kept the interest rate unaltered and pushed selling in the leveraged sectors such as cement and steel. Concerns over higher than expected reading of inflationary pressures and political uncertainty sparked by coalition partners of the government also kept investors away from the market.