Stock market relapses as PSX-100 sheds 396 points
The PSX-100 shed 396 points or 0.9 percent to close at 42,446 points.
(Dunya News) - The market relapsed as foreign portfolio outflows persisted along with some disappointing earnings results.
The PSX-100 shed 396 points or 0.9 percent to close at 42,446 points. Moreover the average traded volumes were on the lower side during the week with 89.39 million shares traded on the main board and 161.21 million shares traded on the broader market. In terms of sector performance, Commercial Banks remained the major index dampener with Habib Bank, down 6 percent alone contributing 142 points to the KSE-100 Index decline.
Foreign Portfolio Investors sold shares worth 6.6 million shares during the week followed by mutual funds who recorded a net selling of 6.2 million dollar. Individuals 5.9 million dollars and Insurance Companies 5.5 million dollars stood as the major buyers during the week.
Major losers during the week included: PAEL down 10 percent on dismal earnings’ announcement, and SSGC down 7 percent on news that it lost a case in international arbitration for failing to provide gas to Habibullah Coastal Power Company. Other key highlights during the week included State Bank of Pakistan held foreign exchange reserves slid to $10.15 billion, down by $216 million, Summit Bank (SMBL) and Sindh Bank merger likely by end of September, and power sector receivables rose to Rs 896 billion.
BMA Capital Management analyst said that with the newly elected government in power emerging with clear majority at the center, investors are likely to focus on their strategy in dealing with macro imbalances at play. He said that any positive news on potential inflows from multilateral institutions, friendly countries or both is likely to be welcomed by market participants.
With the last batch of corporate earnings expected in the upcoming week, we eye investors’ focus to remain vigilant of earnings surprise and misses where better than expected results may trigger rally in select sectors.
--- Details by Haris Zamir
