Bears pull KSE-100 down 168 points

KARACHI: Bears ruled the Pakistan Stock Exchange (PSX) on the first trading session of the week, with the benchmark index closing in the red zone amid volatile activity. 

The performance of global equity markets also remained mixed, whereas crude oil prices lowered from the previous close; WTI crude price fell 0.14pc to $41.95 while Brent crude oil price dropped 0.29pc to $44.67.

“The stock market witnessed negativity on Monday, mainly due to the adverse impact of tariff rationalization for IPPs, as well as selling pressure on fertiliser and cement sectors due to the repayment of GIDC as decided by the Supreme Court on the previous trading day,” said a report issued by AHL Ltd. “Exploration & Production and oil & gas companies performed well, partly due to investors switching from power and fertiliser sectors and partly because of the expectation of resolution of issues pertaining to circular debt.”

The benchmark KSE-100 Index saw volatility throughout the day, registering its intraday high at 40,405.41 (+114.67 points) and intraday low at 39,939.69 (351.05 points). It closed lower by 168.24 points at 40,122.50. 

Among other indices, the KMI-30 Index gained 70.86 points to end at 64,554.19, while the KSE All Share Index added 64.94 points, settling at 28,199.20.

The overall market volumes declined from 556.3 million shares in the previous session to 522.7 million shares (-6pc). Average traded value, on the contrary, increased by 16pc, from $115.1 million to $133.7 million. Unity Foods Ltd (UNITY +2.59pc), Hascol Petroleum Ltd (HASCOL +0.61pc) and TRG Pakistan Ltd (TRG +1.74pc) led the volume chart, exchanging 37.37 million, 35.31 million and 26.44 million shares, respectively.

Sectors that dragged the index to the red included fertiliser (-169.73 points), power generation & distribution (-127.89 points) and banking (-49.50 points). Among the companies, Hub Power Company Ltd (HUBC -122.76 points), Engro Corporation Ltd (ENGRO -118.15 points) and Habib Bank Ltd (HBL -62.70 points) dented the index the most.

Shedding 2.99pc from its cumulative market capitalization, the fertiliser sector turned out to be the session’s top gainer, with Engro Fertilizer Ltd (EFERT -5.45pc), Engro Corp Ltd (ENGRO -5.34pc) and Fauji Fertilizer Bin Qasim Ltd (FFBL -5.86pc) closing in the red.

Meanwhile, Pak Elektron Limited (PAEL +2.14pc) announced its financial performance for the second quarter of FY20. Despite a fall of 3.67pc in sales, the company’s gross profit margin improved from 10.09pc last year to 21.9pc, as cost of sales fell by 16pc. The company’s earnings per share improved from Rs0.17 in 2QFY19 to Rs0.19.

Also, in a notification to the exchange, Hub Power Company Ltd (HUBC -6.18pc) informed that the company and the Committee for Negotiations with Independent Power Producers (constituted by the federal government) have executed a memorandum of understanding.