October 4, 2020 (MLN): The KSE-100 index lost around 1,630 points during the departed week and closed at 40,071-mark i.e. nearly 3.9% percent lower than the closing of the previous week.
The market started the week by extending bearish sentiments from the previous one, with the situation worsening after the arrest of PML-N leader, Shahbaz Sharif. However, a brief period of respite was witnessed on account of the USD 300 million loan approved by ADB for supporting development of capital markets. Moreover, the appreciation of followed by the Pak Rupee against the US Dollar, wherein it settled at 164.51 also added to the positive sentiments.
The rising cases of COVID-19 in the country which resulted in the implementation of a smart lockdown in various parts of Karachi pulled the index towards the red region again. This was coupled with a fall in international oil prices by 7% during the week, which took a toll on the E&P companies.
Fertilizers, Cement, Oil and Gas Marketing Companies, E&Ps, and Commercial Banks emerged as the worst performing sectors during the week, as they snatched 190, 179, 164, 159, and 157 points respectively from the benchmark index. Company-wise, the scrips of HASCOL, TRG, SYS, UBL, and HUBC emerged as the top losing scrips as they snatched 61, 61, 60, 58 and 57 points from the index.
Figures released by NCCPL showed that foreign investors sold USD 8.3 million worth of stocks during the week with foreign corporates doing the bulk of selling. Majority of the selling was witnessed in areas such as Commercial Banks and Cement. On the local front, insurance companies purchased USD 15.4 million worth of stocks, followed by USD 12.4 million worth of stocks bought by Banks/DFIs.
