Pandora Papers exposé limit gains at PSX

• Benchmark KSE-100 index ends session with a gain of 172.8 points at 45,044.50.
• Soaring inflation and depreciating currency fuelled selling pressure across the board.
• Volumes remained unchanged at 267.2 million shares.

KARACHI: The Pakistan Stock Exchange (PSX) remained subdued on the first trading day of the week.

The KSE-100 index remained range-bound, moving between an intra-day high and low of 45,105.04 and 44,561.82 points before finishing off Monday's session with a gain of 172.8 points, or 0.39%, at 45,044.50.

Investors' mood was spoiled by the release of the Pandora Papers — an investigation uncovering financial secrets held by high-profile individuals across the world.

Moreover, soaring inflation and a depreciating currency fuelled selling pressure across the board.

According to data released by the Pakistan Bureau of Statistics, the inflation reading skyrocketed to 9% in September on the back of fuel and food prices.

A report by Topline Securities noted that Pakistan equities witnessed a bearish start to the week as investors adopted a cautious stance owing to the “recent hype of Pandora papers coupled with a higher than anticipated CPI number — 8.99% year-on-year for the month of September 2021.”

The market players also remained on the sidelines ahead of forthcoming talks with the International Monetary Fund (IMF) on the sixth review of the $6 billion Extended Fund Facility.

During the session, shares of 545 listed companies were traded. At the end of the session, 348 stocks closed in the green, 192 in the red, and 5 remained unchanged.

Among these 545 scrips, those that contributed positively to the index included TRG Pakistan (+49 points), Searle (+39 points), Colgate-Palmolive (+17 points), Avanceon (+17 points) and Engro Corporation (+16 points).

On the flip side, stocks that contributed negatively were Pakistan Petroleum (-23 points), Lucky Cement (-21 points), Pakistan Oilfield (-12 points), Fauji Fertilizer Company (-11 points) and Cherat Cement (-8 points).

A report from Arif Habib Limited stated that the increased foreign outflow (due to reclassification of Pakistan from MSCI Emerging Market to MSCI Frontier market) in recent sessions has put added pressure on the KSE-100 index.

“Outflows from exploration and production, banks and fertiliser sector kept the local investors poised for further downside in these sectors and reflection of that was witnessed in Pakistan Petroleum, Pakistan Oilfields, HBL, Systems Limited, Engro Fertiliser,” it said.

Volumes remained unchanged at 267.2 million shares (+0.1% day-on-day). Meanwhile, the average traded value also increased by 12% to reach $59.1 million against $52.8 million.

Telecard Limited was the volume leader with 25.7 million shares, gaining Rs1.34 to close at Rs19.19. It was followed by WorldCall Telecom with 21.6 million shares, gaining Rs0.15 to close at Rs2.93, and Summit Bank with 14.7 million shares, gaining Rs0.34 to close at Rs2.94.