KARACHI: The Pakistan Stock Exchange (PSX) witnessed overall bearish trend last week as KSE-100 index shed a total of 844 points (-2.47 per cent) during the last five sessions and closed at 33,267 points.
Only in one session the bulls returned to the bourse, while bearish trend ruled all other four sessions. Uncertainty regarding the rising number of cases/deaths caused by the coronavirus across the country, and the government’s simultaneous announcement of ending “nationwide lockdown” from May 9 kept the investors at bay.
On the first day of the week (Monday), PSX witnessed bearish trend as KSE-100 index opened at 34,111 points, but closed at 33,916 points with the negative change of 195 points (0.57 percent). The benchmark KSE-100 index lost ground due to instability in international crude oil prices. Stocks fell from the moment trading began, reacting to the impact of the COVID-19 pandemic on the national economy and domestic markets. Moreover, anticipation of rate cut in the upcoming monetary policy announcement weighed on sentiment that prevented investors from taking fresh positions.
The market witnessed some profit-booking on the back of developing situation on the international front and oil prices, which came down after posting significant gains last week. Exploration and production and oil marketing companies recorded considerable trading volume and largely maintained a higher average than the last trading session.
On Tuesday, PSX witnessed a bullish trend and KSE-100 index closed at 33,992 points as compared to 33,916 points on the last working day with positive change of 76.11 points (+0.22pc). This was mainly due to increase in crude prices at international level.
However, the situation reversed on Wednesday when KSE 100 index came down to 33,728 points with a negative change of 264 points (-0.78pc). The stock market opened the day on a positive note but couldn’t sustain the selling pressure, resulting in its downfall. Banks, cement and E&P stocks weathered selling pressure regardless of international crude oil prices. However, fertiliser stocks traded no different than the rest and saw a decline in their prices.
Likewise, PSX continued losing points on Thursday and KSE-100 Index closed at 33,304 points after losing 424 points (-1.26pc). The bourse succumbed to selling pressure and the KSE-100 Index, despite recovering losses accumulated in early trade, shed over 400 points by day’s end.
Regardless of what the international crude prices were being trading at, local exploration and production and oil and gas management companies, which responded positively to the ascend in international crude prices last week, remained oblivious to further price gains. Profit booking was clearly on the investors’ minds who cashed out from fertiliser, cement, E&P and O&GMCs sectors.
The situation saw no difference on Friday too, as the bourse continued with bearish trend and KSE-100 index closed at 33,267 points with the negative change of 36 points (-0.11pc).
The KSE-100 Index started the day on a positive note, gaining 197 points to touch its intraday high at 33,501.30. However, it changed direction thereon and recorded its intraday low at 33,159.05 after losing 145.11 points.
The index finally closed flat (-36.47 points) at 33,267.69. Selling pressure remained evident in banks, cement and exploration and production, which felt little impact of international oil prices.
Positive contributors to the KSE-100 Index included oil and gas exploration (+32.41 points), power generation and distribution (+24.88 points) and food and personal care (+20.17 points). On the other hand, banking (-50.39 points), fertiliser (-28.56 points) and automobile assembling (-11.76 points) sectors pulled the index to the red zone.
Nice information 👍