Stocks bleed 406 points on crude plunge

KARACHI: The Pakistan Stock Exchange (PSX) started the week on a negative note, as equity markets around the world reacted badly to the plunge in global crude oil prices, which came after many countries announced a fresh round of lockdown and travel restrictions.

According to media reports, oil prices tumbled by $3 on Monday, their biggest daily fall since June, “as a fast-spreading new coronavirus strain that has shut down much of Britain and led to tighter restrictions in Europe sparked worries about a slower recovery in fuel demand”.

Brent crude was down $3.00, or 5.7pc, to $49.26 a barrel by 1028 GMT, and US West Texas Intermediate (WTI) crude was down $2.92, or 6pc, to $46.18 a barrel.


After moving within a narrow range for the most part, the benchmark KSE-100 Index fell to its intraday low at 43,295.64 after losing 444.92 points. It settled lower by 406.80 points at 43,333.76.

Among other indices, the KMI-30 Index declined 1,164.61 points to end at 70,481.99, while the KSE All Share Index dropped 246.50 points, closing at 30,491.86.

The overall market volumes appreciated from 482.53 million shares in the previous session to 516.44 million shares (+7pc). Average traded value, however, declined 5pc, from $147.6 million to $139.7 million. Worldcall Telecom (WTL +9.26pc), TRG Pakistan Limited (TRG +1.14pc) and Invest Capital Investment Bank Limited (ICIBL +46.92pc) led the volume chart, exchanging 36.56 million, 35.18 million and 31.02 million shares, respectively.

Sectors that dragged the benchmark index lower included oil & gas exploration (-177.39 points), banking (-91.99 points) and cement (-45.67 points). Among the companies, Oil and Gas Development Company Ltd (OGDC -69.32 points), Pak Petroleum Ltd (PPL 60.29 points) and Habib Bank Ltd (HBL -32.77 points) dented the index the most.

Shedding 3.60pc from its cumulative market capitalisation, the oil & gas exploration sector as the session’s worst performer, with Mari Petroleum Company Ltd (MARI 1.90pc), Oil and Gas Development Company Ltd (OGDC -4.25pc), Pak Petroleum Ltd (PPL -4.14pc) and Pakistan Oilfields Ltd (POL -2.51pc) closing in the negative.

The Board of Directors of First Treet Manufacturing Modaraba (FTMM 0.00%) approved conversion of short-term loan by Treet Corporation Limited into FTMM’s equity. They also approved that the debt-conversion will take place without rights issue and it is subject to approval by the Securities and Exchange Commission of Pakistan.

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