KARACHI: In line with recent trends, the Pakistan Stock Exchange (PSX) once again opened the session on a bearish note, but managed to change its course later in the day to close in the green.
A 45-minute ‘market halt’ was triggered for the third time this week after the KSE-30 Index fell 5.96pc to 15,039.17 points during the initial trading hour.
A ‘market halt’ is a standard protocol for risk management purposes which is triggered when the KSE-30 Index moves 4pc either way and remains there for five consecutive minutes.
Similar ‘halts’ were also witnessed at various global equity markets, as investors resorted to panic-selling amid growing coronavirus tensions.
Meanwhile, news of foreign investors pulling out almost one-sixth of their investment in treasury bills (T-bills) during the last three weeks further created panic among investors.
Net outflows from T-bills reached $606.54 million in first 12 days of the current month, whereas total divestment from Pakistan’s capital markets (including equity, T-bills and Pakistan Investment Bonds) stood at $671.37 million during the said period.
According to latest data published by the State Bank of Pakistan, the country’s total liquid foreign exchange reserves rose by $36 million to $18,905 million (as on March 6, 2020). The reserves previously stood at $18,869 million (Feb 28, 2020).
Losing 1,689.78 points, the benchmark KSE-100 Index touched its intraday low at 34,266.91. However, as trading resumed after the 45-minute halt, the index rebounded and touched its intraday high at 36,212.38 after accumulating 255.69 points. It finally settled higher by 104.19 points at 36,060.88.
The index’s one-week return was recorded at -5.65pc.
Among other indices, the KMI-30 Index appreciated by 618.82 points to close at 55,908.04, whereas the KSE All Share Index lost 19.01 points, ending at 25,291.96. Of the total traded shares, 138 advanced and 174 declined.
Sectors that rescued the KSE-100 Index from bloodbath included oil & gas exploration (+116.76 points), pharmaceutical (+34.62 points) and oil & gas marketing (+28.07 points).
The overall market volumes increased from 230.70 million shares in the previous session to 290.47 million shares, with The Bank of Punjab (BOP -0.98pc), Maple Leaf Cement Factory Limited (MLCF +0.58pc) and Fauji Cement Company Limited (FCCL -0.06pc) topping the volume chart. The scripts had exchanged 31.11 million, 25.71 million, and 20.95 million shares, respectively.
Through a notification, the PSX announced to launch the NIT Pakistan Gateway Index on March 16. The index aims to track the performance of stocks that represent 50pc free-float market cap of the KSE-100 Index. It will be made live with a base value of 10,000 points.
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