PSX observed continued selling from foreign investors today

· 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 potential increase in circular debt emanating from rising energy costs. A key conditionality from IMF for resumption of program has been upward revision in electricity tariff, besides an end to subsidies and increase in tax revenues. These measures in part or whole are expected to dent 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 & gas chain are observed in overall market with significant selling pressure in TRG among tech sector stocks. Among scrips, UNITY led the volumes with 25.7M shares, followed by TELE (20.1M) and WTL (16.8M).

· The Index closed at 44,373pts as against 44,667pts showing a decline of 293pts (-0.7% DoD). Sectors contributing to the performance include Cement (-91pts), Textile (-36pts), Banks (-35pts), Technology (-30pts), Fertilizer (-24pts) and E&P (+36pts).

· Volumes declined from 334.6mn shares to 252.8mn shares (-25% DoD). Average traded value also declined by 26% to reach US$ 59.0mn as against US$ 79.2mn.

· Stocks that contributed significantly to the volumes include UNITY, TELE, WTL, TREET and BYCO, which formed 35% of total volumes.

· Stocks that contributed positively to the index include MARI (+43pts), UBL (+22pts), MTL (+8pts), COLG (+5pts) and NATF (+4pts). Stocks that contributed negatively include HBL (-28pts), CHCC (-24pts), KTML (-20pts), LUCK (-19pts) and ENGRO (-16pts).

Courtesy – AHL

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