KSE Index Falls Despite Asad Umar’s Assurances
KSE Index Falls Despite Asad Umar’s Assurances: The stock market endured a relatively volatile session and lost ground on Monday, snapping its three-day winning streak.
Despite Finance Minister Asad Umar’s assurances of improving economic conditions in the country, stock investors remained cautious.
Earlier, the KSE-100 index shot up as soon as the trading began, gaining over 340 points. However, soon after selling pressure dragged the index down as fertiliser, oil and gas exploration and cement sectors struck 151 points off the index.
Although the index recovered during the day, it dropped before the end of trading, wiping out all the day’s gains. At the end of trading, the benchmark KSE 100-share Index recorded a decrease of 84.85 points or 0.22% to settle at 38,345.42.
Elixir Securities’ analyst Zainul Abedin said equities traded positive through major part of the day, but selling pressure mounted towards the end. “Eventually and in line with our initial view, the KSE-100 closed down 85 points at 38,345 after touching intra-day high of 38,783 points,” he added.
Engro Corporation (-1.81%) faced selling amidst rising tensions between the company and the government over the award of the LNG terminal contract. After a relief rally last week in Lucky Cement (-2.32%), the stock once again came under pressure on expectations of its removal from the MSCI Emerging Market Index in the upcoming semi-annual review, which would be announced on November 13.
“We expect 38,700-39,200 level to remain supply zone in the immediate short-term,” Abedin remarked. Overall, trading volumes increased to 235.4 million shares compared with Friday’s tally of 231.2 million. The value of shares traded during the day was Rs7.5 billion.
Shares of 385 companies were traded. At the end of the day, 234 stocks closed higher, 139 declined and 12 remained unchanged.
TRG Pakistan was the volume leader with 15.8 million shares, gaining Rs0.99 to close at Rs25.14. It was followed by The Bank of Punjab with 14.5 million shares, gaining Rs0.28 to close at Rs11.40 and Nimir Resins with 12 million shares, gaining Rs0.22 to close at Rs9.21.
Foreign institutional investors were net sellers of Rs478.8 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.
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