Closing Bell: Stock market reverses gains made the day before

Pakistan’s stock market index, KSE-100 ended the day in the red zone yet once again, reversing gains made the day before, as the index lost 132.92 points, or 0.32% to close the day at 41,620 points.

The negative sentiments amongst investors were a reflection of the uncertainty that followed media reports of the Prime Minister’s consent to allow a rise in gas tariffs by over 180 percent in light of recommendations made by the Oil and Gas Regulatory Authority.

In addition, investors were also concerned about the outcome of the visit of US Secretary of State, Mike Pompeo, which comes in the backdrop of the US tilt away from Pakistan, days after cancelling $300 million in Coalition Fund Support to Pakistan, while deepening strategic and economic ties with India in a bid to counter China’s increasing influence in the “India-Pacific” region.

Bound within a range of 309 points, the 100 – index touched an intraday high of 41,805 points and an intraday low of 41,495 points today, while the scrips listed within KSE – 100 witnessed a trading activity of 70.4 million shares, at a value worth PKR 4.2 billion.

Emerging as the worst performing sectors of the day, Fertilizer, Cement and Oil & Gas exploration companies collectively took away over 100 points from the KSE – 100 index, as they face immense pressure from the decision to increase the gas prices.

Losses on blue chip stocks drove the index with POL (-1.34%), DAWH (-1.98%), MCB (-0.80%), LUCK (-0.79%), HUBC (-0.84%), ABOT (-3.88%), and ENRGO (-0.51%) causing major runs on the index.

On the other hand, the broader KSE All Share shed 86 points by the day end, closing in at 30,579 points, down by 0.28%. An intraday high of 30,700 points was recorded for the KSE All Share index, while intraday low sunk to 30,530 points today.

Over 126.9 million shares of the scrips listed within the broader KSE All Share Index were traded today, with its value recorded at Rs.5.48 billion. Moreover, the chemical sector ended up as the volume leader at PSX today.

The total number of companies traded today were 312 out of which 92 closed up, 197 closed down while 23 remained unchanged from their previous stock prices.

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