KARACHI: The Pakistan Stock Exchange (PSX) moved in a narrow range on Monday, with the benchmark KSE-100 Index closing flat amid a lack of clear direction.
Global equity markets also displayed a mixed show, as crude oil prices slipped from the previous close. WTI crude oil price clocked in at $23.96/barrel (-3.07pc), while Brent crude oil price dropped by 3.11pc to $29.90.
Foreign investors closed the previous week as net sellers, registering a net outflow of $15.79 million.
“The banking sector remained in the negative zone throughout the day and similar activity was observed in cement and E&P stocks since all eyes are set on MSCI rebalancing and policy rate cut,” said an analyst at Arif Habib Ltd.
MSCI is scheduled to announce its decision on May 12 (tomorrow), whereas the State Bank of Pakistan would decide on the policy rate on May 16th.
“Side-board scrips (WTL, HUMNL, UNITY and TRG) came in the limelight on Monday and contributed significantly to the volumes. Pharma stocks also performed well on the bourse owing to a possible non-exclusive engagement between Ferozsons and Gilead for manufacturing coronavirus drug.”
Losing 141.34 points in early trade, the KSE-100 Index recorded its intraday low at 33,126.15. However, the index managed to change its direction and crawled to its intraday high at 33,316.06 after gaining 48.37 points. It finally settled flat (+16.10 points) at 33,283.79.
Among other indices, the KMI-30 Index lost 60.05 points to end at 54,038.55, while the KSE All Share Index dropped 15.57 points, settling at 23,666.61. Of the total traded shares, 150 advanced and 116 declined.
The overall market volumes surged from 88 million to 198.2 million (+125pc). Average traded value also increased 15pc, from $23.9 million to $27.4 million. Worldcall Telecom (WTL 28.21pc), TRG Pakistan Limited (TRG 6.72pc) and Unity Foods Limited (UNITY 2.81pc) led the volume chart, exchanging 62.43 million, 15.80 million and 15.15 million shares, respectively.
Sectors that pushed the KSE-100 Index lower included power generation & distribution sector (-27.62 points), oil & gas exploration (-25.25 points) and cement (-14.38 points). On the other hand, pharmaceutical (+47.77 points), technology (+25.45 points) and oil & gas marketing (+11.75 points) sector rescued the index from closing in the red.
Technology & communication sector turned out to be the top gainer for the day, adding 5.38pc to its cumulative market capitalization. Hum Network Limited (HUMNL) surged 13.95pc, TRG Pakistan Limited (TRG) by 6.72pc and Avanceon Limited (AVN +7.48pc) accumulated decent gains.
Among market developments, Ferozsons Labortories Limited (FEROZ +7.50pc) has announced that its subsidiary, BF Biosciences Limited (BFBL), is in negotiations to enter into non-exclusive license agreement with Gilead Sciences Inc for the manufacturing and sale of remdesivir (supply to Pakistan and 126 other countries) under Gilead’s Patient Solution Programme. Remdesivir has been granted emergency use authorization by US Food authority to treat hospitalized patients with severe COVID-19 disease.
Meanwhile, Mughal Iron and Steel Industries Limited (MUGHAL +0.05pc), Waves Singer Pakistan Limited (+3.74pc) and Pak Elektron Limited (PAEL +2.67pc) announced resumption of operations.
