Pakistan equity market closes in red as T-bill yields hit 24 years high

Pakistan equity market closes in red as T-bill yields hit 24 years high

Latifur Rehman
April 28, 2022

Pakistan equity market closes in red as T-bill yields hit 24 years high

KARACHI: The Pakistan equity market closed lower on Thursday, as the T-bill yields recorded a 24-year high and fiscal deficit surging to 4 per cent of GDP during the first nine months of the fiscal year 2022.

An analyst at Pearl Securities said that the local bourse witnessed mix sessions throughout the week due to various developments including the resumption of the International Monetary Fund (IMF) programme as well as increasing the loan amount by $2 billion.

“Oil prices continued an upward trajectory hovering around $102.66/barrel, uncertainty on the political front as Imran Khan has said that his party would hold a sit-in at Islamabad until the announcement of the general election, further fueling uncertainty on the domestic front,” he added.

Pakistan’s fiscal deficit has surged to 4 per cent of GDP during the first nine months of fiscal year 2022 amid higher subsidies and grants.

The Pakistan Stock Exchange KSE-100 shares Index shed 0.62 per cent, or 283.89 points, to close at 45,249.41 points. The KSE-30 shares Index shed 0.65 per cent, or 112.60 points, to close at 17,314.51 points.

The ready market volumes stood at 325.46 million shares compared with the turnover of 223.82 million shares in the last trading session.

An analyst at Arif Habib Limited said that the market nosedived from the opening as the cut-off yields of T-bills reached a 24 years high.

“The benchmark KSE-100 Index traded in the red zone throughout the day as bears dominated the market and investors opted for profit selling. The session remained volatile as selling was observed across the board,” he added.

Going forward, the analysts expect the market to take direction after long Eid holidays. Hence, suggesting investors adopt the “Sell on Strength” strategy in the upcoming week.

The companies which reflected the highest gains included Nestle Pakistan up Rs74.99 to close at Rs5,875/share, and Sapphire Fiber up Rs65.90 to close at Rs1,059.50/share.

The companies that reflected the most losses included Pak Tobacco(XD) down Rs51.99 to close at Rs998.01/share, and Rafhan Maize(XD) down Rs50 to close at Rs11,600/share.

The highest volumes were witnessed in WorldCall Telecom with a turnover of 37.49 million shares. The scrip shed 2 paisas to close at Rs1.68/share, followed by Cnergyico PK with a turnover of 34.66 million shares. It shed 44 to close at Rs6.35/share. Hum Network(XD) remained the third with a turnover of 27.43 million shares. It shed 20 paisas to finish at Rs7.62/share.