Stocks bleed 882 points as political noise amplifies

KARACHI: Pakistan Stock Exchange (PSX) witnessed bloodbath on Thursday, as investors resorted to panic selling due to political uncertainty caused by unexpected Senate results.

“The incumbent government’s defeat in the Senate elections dented the investor sentiment today, with the benchmark index plunging over 1,000 points intraday. However, recovery ensued following the PTI announcement that the prime minister will seek a fresh vote of confidence from the National Assembly,” a report issued by Arif Habib Ltd read. “By mid-day, prospects of redemption at mutual funds’ end brought the index under pressure again, continuing till end of session.”

MARKET SUMMARY

The benchmark KSE-100 Index started the day on a negative note, plunging 1,073.15 points to record its intraday low at 45,087.63. It settled lower by 882.25 points or 1.91pc at 45,278.53.

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Among other indices, the KMI-30 Index dropped 1,685.61 points to close at 75,339.18, while the KSE All Share Index lost 531.19 points, ending day at 31,133.89.

The overall market volumes improved from 403.69 million shares in the previous session to 441.42 million shares (+9pc). Average traded value, however, declined by 10pc, from $149.5 million to $135 million. K-Electric Ltd (KEL -4.12pc), Ghani Global Holdings (GGL +5.18pc) and TRG Pakistan ltd (TRG -3.32pc) led the volume chart, exchanging 33.11 million, 28.67 million and 25.83 million shares, respectively.

Sectors that drove the benchmark index south included cement (-166.84 points), banking (-141.58 points) and oil & gas exploration (-70.98 points). Among the companies, Lucky Cement ltd (LUCK -66.50 points), TRG Pakistan Ltd (TRG -52.58 points) and Habib Bank Ltd (HBL -35.48 points) dented the index the most.

Shedding 3.82pc from its cumulative market capitalization, the cement sector ended as the session’s worst performer, with Bestway Cement Ltd (BWCL -7.48pc), DG Khan Cement Company Ltd (DGKC -3.68pc) and Lucky Cement Ltd (LUCK -2.52pc) ending in the negative.

Meanwhile, Systems Ltd (SYS -0.20pc) announced its financial performance for FY20. The company’s sales appreciated by 40.48pc YoY, pushing the gross profit up by 58pc. Earnings per share improved from Rs11.05 in FY19 to Rs17.66 in FY20.

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