LAHORE: After gaining around 66 points during the session market eventually slipped in the red zone, where it lost around 325 points intraday to close at an index level of 42,536 points, down 236 points from Wednesday’s close.
Market volumes remained thin and were recorded at 127.17 million. Faysal Bank Limited (FABL +2.96 per cent) was volume leader for the day. The script garnered volumes of 11.92 million. First Dawood Investment Bank Limited (FDIBL +14.42 per cent) followed with 10.98 million shares traded. Next to the chart was The Bank of Punjab (BOP +0.25 per cent) with volume of 10.86 million.
Major sectors traded weak here on Thursday. The largest market capitalisation sector, the commercial bank sector, pulled its market capitalisation down by 0.11 per cent. The oil and gas exploration sector also narrowed its market cap by a minor 0.18 per cent. Cement and automobile assembler sector took a wider dip, 1.52 per cent and 1.18 per cent respectively.
The market activity could not pick its pace during the day as investors got are deprived of updates/plans on lingering political and economic issues. Rising current account deficit, depleting foreign reserves, ongoing sessions in Bangkok related to Financial Action Task Force on Money Laundering (FATF), and an inconclusive meeting between the opposition leader and Prime Minister Shahid Khaqan Abbasi over the selection of caretaker prime minister continue to hammer investor’s sentiments.
Market analysts opine that resolution of these is utmost important for rebuilding of local and foreign investors’ confidence in Pakistani equities. To note, foreigners have sold over $45 million worth of equities in Pakistan during May 2018, that is almost double than in April 2018 on back of global emerging market sell-off and domestic issues, analysts at Topline Securities note.
Meanwhile, Singer Pakistan Limited (SINGER) notified the Pakistan Stock Exchange (PSX) that the company was in advanced stage of amalgamation process with the Sindh High Court (SHC), wherein Cool Industries and Link Well limited is being merged with and into the company and the retail business of the company is being demerged into the electronic marketing company limited as per scheme of arrangement. On May 22, 2018, SHC had passed sanctioning the scheme of arrangement.
Moreover, Hub Power Company (HUBC) has also signed MoU with FWO Enjazat L.L.C to explore collaboration on various business opportunities in energy, water, and mining sectors. FWO Enjazat is a partnership between FWO and the private office of His highness Sheikh Ahmed Dalmook Al Maktoum.