Stock markets decline by 606 points on political uncertainty, coronavirus

Stock markets decline by 606 points on political uncertainty, coronavirus

KARACHI: The stock market fell by 606 points on Friday owing to political uncertainty and spread of coronavirus.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,070 points as against 40,677 points showing a decline of 606 points.

Analysts at Arif Habib Limited said that the market saw continuation of selling pressure for a host of reasons from political uncertainty to spread of Corona cases (with the latest affectee being President Trump himself).

The index lost a total of 771 points during the session and closed the session -606 points. International crude oil prices dropped significantly, especially after announcement of President Trump’s being tested positive for Corona.

This caused selling in local E&P stocks, OGDC, PPL and POL. At the same time, redemptions in Mutual Funds prompted institutional sell-off as well.

Volumes remained heavily tilted in favour of O&GMCs, particularly HASCOL, however, the stock price saw lower circuit among other tech stocks that saw sky high prices in the previous run-up. HASCOL topped the volumes with 52.6 million shares, followed by KEL (35.1 million) and TRG (24.6 million).

Sectors contributing to the performance include E&P (-135 points), O&GMCs (-78 points), Banks (-71 points), Cement (-57 points) and Technology (-55 points).

Volumes declined further from 371.8 million shares to 348.6 million shares (-6 percent DoD). Average traded value also declined by 0.6 percent to reach US$ 75.6 million as against US$ 76 million.

Stocks that contributed significantly to the volumes include HASCOL, KEL, TRG, UNITY and PIBTL, which formed 44 percent of total volumes.

Stocks that contributed positively to the index include HUBC (+16 points), BAHL (+16 points), ILP (+4 points), HCAR (+4 points) and AGIL (+3 points). Stocks that contributed negatively include PPL (-51 points), OGDC (-45 points), TRG (-36 points), POL (-33 points) and PSO (-30 points).