KARACHI
Another disappointing session was witnessed on Thursday, where the market could not advance due to selling spree in heavy-weight sectors like oil & gas, cement, and commercial Banks. Reduced Ramzan timings and low interest from foreigners due to changed dynamics post-MSCI EM inclusion were also possible reasons for the lack of activity. According to data compiled by National Clearing Company of Pakistan (NCCPL), from June 1st, 2017, when Pakistan was formally inducted into the Emerging Markets Index (EMI) to June 7th, 2017 a net of $ 48 M was taken out of Pakistan Stock Exchange (PSX) by foreigners.
The benchmark KSE 100 index closed at 49,958.33 (-0.41 per cent) shedding 204.48 points for the day. After hitting its peak of 50,290 points in the morning, it was a downward trajectory for the benchmark during the rest of the day. The KMI 30 index lost 307.25 points (-0.36 per cent) for the day and the KSE All Share Index was down by 89.72 points (-0.26 per cent).
A total of 144 scripts advanced, 210 declined while 13 remained unchanged. The market volumes increased from 232.5 million to 268.8 million for the day. Highest volumes were recorded in Bank of Punjab Right (BOPR2 -18.18 per cent) followed by Power Cement Limited Right (POWERR -17.19 per cent).
Heavyweight sectors including commercial banks, cement and oil & gas exploration lost -0.63 per cent & -0.64 per cent & -0.79 per cent of their respective market capitalizations during the day. Selling pressure in oil & gas sector was induced by a drop in oil prices overnight after data released by US Government showed an increase in stockpiles of the commodity as opposed to an expected drop.
However, this must be noted that the fall is not a result of Qatari boycott by the leading Gulf Cooperation Council (GCC) member states.
