Stocks tumble on simmering IMF worries

Tuesday, Dec 06, 2022

Stocks fell over one percent on Monday as a possible delay of the IMF’s ninth review of Pakistan’s economy added to worries about weaker economic data The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index fell 537.43 points or 1.28 percent to close at 41,612.67 points.

The highest index of the day remained at 42,248.53 points while the lowest level of the day was recorded at 41,513.91 points. KSE-30 index also shed 228.06 points or 1.46 percent to close at 15,360.25 points.

Brokerage Capital Stake said bears took charge of the PSX on the first trading session of the week. “Ambiguity surrounding the ninth review of the IMF paired with foreign exchange reserves dropping to a record low caused investors to retreat,” the brokerage said in a post market report.

Traded shares decreased by 17 million shares to 126.256 million shares from 143.209 million shares. The trading value dropped to Rs3.244 billion from Rs5.094 billion. Market capital narrowed to Rs6.661 trillion from Rs6.727 trillion.

Out of 329 companies active in the session, 61 closed in green, 250 in red and 18 remained unchanged. Brokerage Arif Habib Ltd said a bloodbath session was recorded at the PSX. “The market opened in the green, but lack of investor participation and redemptions caused the index to drop 632.29 points intraday and closed in the red,” it reported.

“Volumes in the mainboard dried up notably as a result of political noise in the country, and third-tier companies continued to lead the volume board.” Analyst Muhammad Arbash at Topline Securities said equities closed negative where the benchmark index settled 1.28 percent down.

“After a slightly positive opening market witnessed profit taking as investors varied over delayed IMF 9th review and subsequent approval of $1.2 billion loan tranche followed by unstable economic conditions and poor foreign reserves led the investor’s confidence in check,” Arbash said.

The market made an intraday low of 635 points where significant pressure came from SYS, LUCK, ENGRO, MTL and CHCC which cumulatively dented the Index by 194 points.

The highest increase was recorded in shares of Pak Services, which rose by Rs64.57 to Rs926.31 per share, followed by Reliance Cotton, which increased by Rs40 to Rs705 per share.

A significant decline was noted in shares of Premium Tex., which fell by Rs35.11 to Rs650 per share, followed by J.D.W.Sugar, which decreased by Rs27.72 to Rs416.28 per share.

Sectors contributing to the performance included cement (-127.1 points), technology & communication (-89.0 points), commercial banks (-76.2 points), fertilizer (-50.6 points) and E&P’s (-42.4 points).

WorldCall Telecom remained the volume leader with 9.849 million shares which decreased by 5 paisas to Rs1.36 per share. It was followed by Fauji Cement with 9.477 million shares that closed lower by 65 paisas to Rs12.51 per share.

Other stocks that recorded significant turnover included Hascol Petrol, K-Electric Ltd., D.S. Ind. Ltd., Cnergyico PK, TRG Pak Ltd, Bal. Glass, Dewan Motors and Oilboy Enery L.

Shares’ turnover in the future contracts decreased to 30.264 million shares from 34.603 million shares.