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Foreign selling, price hike dampen Pakistan bourse

KARACHI: Foreign selling, increasing commodity prices, amid supply concerns dampened the market sentiments on Wednesday, dealers said.

Ahsan Mehanti at Arif Habib Corporation said that the stocks fell sharply on investors’ concerns over foreign selling, weak global equities and surging trade deficit.

“Dismal data on cement sales falling by 6 per cent in July-September 2021 and reports of 11.5 per cent surge in [the] government debt near to Rs39.7 trillion played a catalytic role in the bearish close.”

The Pakistan Stock Exchange KSE-100 shares index shed 0.66 per cent, or 293.34 points, to close at 44,373.23 points. The KSE-30 shares index shed 0.46 per cent, or 79.91 points, to close at 17,463.24 points.

As many as 554 scrips were active, of which 109 advanced, 423 declined and 22 remained unchanged. The ready market volumes stood at 252.76 million shares, compared with the turnover of 334.68 million shares in the last trading session.

An analyst at Arif Habib Limited said selling pressure continued unabated at the bourse, courtesy of foreign investors.

“Eye watering commodity prices, especially coal, have had their bearing on cement and steel sector stocks and had ripple effects on O&GMCs, E&P sectors due to concerns over [the] potential increase in [the] circular debt emanating from rising energy costs.”

A key conditionality from the International Monetary Fund (IMF) for the resumption of the programme has been upward revision in the electricity tariff, besides an end to subsidies and increase in the tax revenues.

These measures in part or whole are expected to dent the earnings growth of the corporate sector in the coming quarters, which is reflecting on stock prices, as well.

Ripple effects of selling in cyclical, as well as oil and gas chains are observed in the overall market with significant selling pressure in TRG among tech sector stocks.

The companies that reflected the highest gains included Mari Petroleum, up Rs68.61 to close at Rs1,749.97/share; and Gatron Industries, up Rs32.62 to close at Rs467.62/share.

The companies, which reflected the most losses included Rafhan Maize, down Rs100 to close at Rs10,800/share; and Wyeth Pakistan, down Rs48.37 to close at Rs1,486.63/share.

The highest volumes were witnessed in Unity Foods with a turnover of 25.71 million shares. The scrip gained eight paisas to close at Rs31.88/share; followed by Telecard Limited with a turnover of 20.51 million shares. It shed Rs1.35 to close at Rs20.15/share. WorldCall Telecom remained the third with a turnover of 16.83 million shares. It shed 14 paisas to finish at Rs2.69.

courtesy: bolnews.com

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