KARACHI: Continuing with the recent declining trend, the Pakistan Stock Exchange (PSX) ended the session on Tuesday in the red. Indices drove in reverse direction from the word go while the volumes sank further. Foreign investors closed as net sellers on Monday with a net outflow of $2.13 million.
On the economic front, Pakistan signed three loan agreements worth a total of $918 million with the World Bank. The funds received will be used in three programmes namely, Pakistan Raises Revenue Programme, Higher Education Development in Pakistan and Khyber Pakhtunkhwa Revenue Mobilisation and Resource Management Programme.
As per media reports, Qatari Emir Sheikh Tamim bin Hamad Al-Thani will visit Pakistan on June 23. He also announced to invest $22 billion in different sectors of Pakistan.
After losing 560.21 points, the KSE-100 Index benchmark reached its intraday low of 34,608.61. It ended lower by 487.10 points at 34,681.72. The KMI 30 Index declined by 1,058.65 points or 1.88pc to end at 55,245.93, while the KSE All Share Index fell short by 297.53 points, closing at 25,359.99. The advancers to decliners ratio stood at 64 to 221.
Market volumes dipped from 128.14 million in the preceding session to 104.13 million. Maple Leaf Cement Factory Limited (MLCF -4.13pc), TRG Pakistan Limited (TRG -4.62pc) and Pakistan International Bulk Terminal Limited (PIBTL -0.35pc) were the top picks of the day. The scripts had exchanged 14.73 million shares, 7.33 million shares and 5.56 million shares respectively.
The cement sector once again ended the session in the red. DG Khan Cement Company Limited (DGKC) was down by 4.03pc, Bestway Cement Limited (BWCL) by -3.56pc, Fauji Cement Company Limited (FCCL) by -2.78pc and Lucky Cement Limited (LUCK) by -1.96pc.
The oil and gas marketing companies also closed the day negative. Sui Northern Gas Pipeline Limited (SNGP -4.17pc), Pakistan State Oil Company Limited (PSO -3.36pc), Hascol Petroleum Limited (HASCOL -4.99pc) and Sui Southern Gas Company Limited (SSGC -3.35pc) all ended as losers.
PSX is speculators paradise. But for the small and medium investors the Pakistan stock market is a snake pit where the big speculators keep shedding their skins like the large snakes do. The losses are borne by these small investors who have lost millions during 2017, 2018 and the bearish trend continues.
The stock market is rumour-driven rather than driven by solid economic fundamentals such as company and sectoral performance. There is no clarity in government policy and direction. Uncertainty takes a different form and shape every day. Small investors are confused and frustrated. They cannot recover their losses. But the big speculators and institutions who have passed on the risks and losses to small players are now ready to eat up another PKR 20 Billion of bailout bribes promised by the government. This amount should be given technically to all small investors as compensation for the losses in 2017, 2018 and 2019. Otherwise, the PSX will tank to the bottom for good.