Pakistan bourse closes lower over political, economic turmoil

Pakistan bourse closes lower over political, economic turmoil

Staff Reporter
November 15, 2022

Pakistan bourse closes lower over political, economic turmoil

The Pakistan Stock Exchange KSE-100 shares Index shed 53.98 points, or 0.13 per cent to close at 42,796.85 points.
Analysts recommend investors adopt the “Sell on Strength” strategy in the upcoming sessions.
The ready market volumes stood at 188.66 million shares, compared with the turnover of 185.53 million shares in the last trading session.

KARACHI: The Pakistan bourse closed in the negative territory after a volatile session on Tuesday, owing to the prevailing political and economic uncertainties, analysts said.

An analyst at Pearl Securities said that the bourse observed a volatile session to close in the red zone amid profit-taking and low volumes.

“The investors were kept at bay due to the lack of triggers to take fresh positions in the market. Additionally, the market awaits clarity on the political front with important appointments in the coming weeks,” he added.

The Pakistan Stock Exchange KSE-100 shares Index shed 53.98 points, or 0.13 per cent to close at 42,796.85 points. The KSE-30 shares Index shed 20.46 points, or 0.13 per cent to close at 15708.58 points.

As many as 350 scrips were active of which 156 advanced, 174 declined and 20 remained unchanged.

An analyst at Topline Securities said that the equity market observed range-bound activity despite a decline in the international oil prices. “The investors’ interest remained mostly in the exploration and production (E&P) sector where Pakistan Petroleum Limited (PPL) and Oil and Gas Development Company (OGDC) closed higher.”

Pakistan’s default risk entered alarming new levels this week as the cost of ‘insuring’ the country’s sovereign debt shot up, scaring away investors.

Pakistan’s benchmark 5-year Credit Default Swap (CDS) spiked by 394 basis points to 64.19 per cent on 11 November, a data by Arif Habib Limited showed.

Going forward, the analysts expect the market to remain under pressure. Hence, recommending investors adopt the “Sell on Strength” strategy in the upcoming sessions.

The ready market volumes stood at 188.66 million shares, compared with the turnover of 185.53 million shares in the last trading session.

The companies which reflected the highest gains included Thal Industries up Rs14.99 to close at Rs288.99/share, and Shield Corporation up Rs10 to close at Rs260/share.

The companies which reflected the most losses included Sapphire Fiber down Rs90 to close at Rs1,160/share, and Sanofi-Aventis down Rs80 to close at Rs1,020/share.

The highest volumes were witnessed in Lotte Chemical with a turnover of 17.83 million shares. The scrip gained 33 paisas to close at Rs31.09/share, followed by WorldCall Telecom with a turnover of 14.32 million shares. It shed 4 paisas to close at Rs1.51/share. TRG Pakistan remained the third with a turnover of 12.40 million shares. It shed Rs5.33 to close at Rs140.84/share.

[embedpost slug=”pakistan-bourse-closes-lower-over-political-economic-uncertainty/”]