Saturday, April 10, 2021

Pakistan’s equity market fails to attract investor’s confidence on political scenario

Featured

Zain Zubair
Zain Zubair
Zain Zubair is a staff writer for World News Observer. He is studying ACCA in Pakistan. Besides Accountancy and writing pieces, he loves cooking and nature photography. Zain has attended various modern journalism workshops. Contact: [email protected]

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) continued its bearish trend from last week and continued traded in the red this week.

- Advertisement -

Announcement of USD 3bn deposit from the UAE last Friday failed to ignite confidence in the investors.

Political instability in the wake of ex-PM Nawaz Sharif’s arrest, submission of JIT report on the money-laundering investigation against the top PPP brass and their subsequent enlisting on the Exit Control List (ECL) caused stirs in the investment climate.

Furthermore, investors remain precarious over the Financial Action Task Force (FATF) review which is due next month.

GoP is working to prepare a compliance report to save Pakistan from falling into the black list. Albeit, KSE-100 closed at 37,167 points this week (down 3% WoW).

Sector-wise negative contributions came from Commercial Banks (361pts), Oil & Gas Exploration Companies (230pts), Cement (172pts), Fertilizer (137pts), and Power Generation & Distribution (59pts). Scrip-wise laggards remained UBL (117pts), ENGRO (101pts), LUCK (87pts), OGDC (82pts) and PPL (75pts).

- Advertisement -

On the flipside, sectors that contributed positively were Tobacco (68pts), Pharmaceuticals (33pts) and Automobile Parts & Accessories (9pts).

Foreign selling continued this week clocking-in at USD 1.1mn compared to a net sell of USD 12.2mn last week. Selling was witnessed in Fertilizer (USD 1.2mn) and Commercial Banks (USD 1.2mn).

On the domestic front, major buying was reported by Banks / DFIs (USD 4.6mn) and Companies (USD 3.6mn).

Volumes during the week settled at 110mn shares (up by 5% WoW) while value traded arrived at USD 35.9mn (up by 6% WoW).

Other major news: IMF puts Pakistan in a tight spot, Regulator allows maximum loss claims to SSGC, SNGPL, Cabinet approves plan to float yuan-denominated ‘Panda bonds’, Hubco plans rise in coal project’s stake, NEPRA slashes power tariff by Rs0.31 per unit.

Equity market likely to remain in the red on the back of political uncertainty.

- Advertisement -
Zain Zubair
Zain Zubair
Zain Zubair is a staff writer for World News Observer. He is studying ACCA in Pakistan. Besides Accountancy and writing pieces, he loves cooking and nature photography. Zain has attended various modern journalism workshops. Contact: [email protected]
- Advertisement -spot_img

Latest News

British Royal Artillery fires 41 salute rounds in honor of Prince Philip

The British Royal Artillery fired 41 artillery rounds during gun salutations across the UK; In honor of the death...
- Advertisement -

Related News