Karachi: Stocks closed lower amid economic uncertainty further aggravated by massive decline in remittances and surging T-bill yields, traders said.

Pakistan Stock Exchange (PSX) benchmark KSE 100-shares index declined 1.34 percent or by

557.86 points to close at 41,179.76 points against 41,737.62 points recorded in last session. Intraday high was 41,997.66 points, while lowest level of day was recorded at 41,109.29 points.

Analyst Ahsan Mehanti at Arif Habib Corp said capital market fell across board as investors weighed slump in remittances that fell 14.3 percent year-on-year to stand at $ 2.1 billion in November 2022 and surging T bill yields.

Major negative contributors were United Bank, Hubco, Pakistan Petroleum, Engro Fertilizer and Bank Al Habib, which dented index by 218 points.

Highest increase was recorded in the shares of Bhanero Tex, up Rs 79.72 to close at Rs 1,142.72/share, followed by Pak Services, up Rs 70.83 to close at Rs 1,350/share. A significant decline was noted in shares of Unilever Foods, down Rs 1,000 to end at Rs 24,000 a share, followed by Rafhan Maize, down by Rs 360 to end at Rs 8,700 per share.

Brokerage Arif Habib Ltd said market closed in red, as mutual funds began redeeming their positions over prevailing political clamour. “News of acquisition (buyback) of shares by numerous corporations increased volumes across board, but third-tier stocks continued to dominate board in terms of volume,” it reported.

Sectors contributing to performance included commercial banks (-180.4 points), E&Ps (-106.1 points), technology and communication (-66.5 points), power generation and distribution (-57.3 points) and cements (-37.4 points).

Bank Al-Falah remained volume leader with 41.170 million shares. Its scrip decreased by 47 paisas to stand at Rs 30.69 per share. It was followed by WorldCall Telecom with 18.586 million shares traded. It closed lower by 6 paisas to end at Rs 1.29 pershare.

Other stocks that recorded significant turnover included K-Electric, Dewan Motors, Hascol Petrol, Fauji Cement, Bal Glass, Hum Network, Cnergyico PK and TPL Properties.

Shares’ turnover in future contracts increased to 33.969 million shares from 32.777 million shares recorded preciously. KSE-30 index also shed 1.60 percent or 248.17 points to close at 15,215.25 points compared with 15,463.42 points recorded in last session.

Traded shares increased by 99 million shares to 245.017 million shares from 146.710 million shares. Trading value rose to Rs 7.595 billion from Rs 3.910 billion. Market capital narrowed to Rs 6.544 trillion from Rs 6.627 trillion. Out of 330 companies active in session, 67 closed in green, 249 in red and 14 remained unchanged.

Muhammad Arbash, an analyst at Topline Securities said day kicked off on positive note as investors cheered Engro’s “material information in which it notified exchange regarding purchase/buy-back of up to 70 million issued and paid-up ordinary shares of company, which led stock to touch its upper limit and market made an intraday high of 259 points”.

Published in The Daily National Courier, December, 16 2022

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