Wednesday Nov 30 2022
BDBusiness Desk

Pakistan stocks flatline on economic fears

BDBusiness Desk
A group of stockbrokers is glued to a trading screen at Pakistan Stock Exchange. — Reuters/File
A group of stockbrokers is glued to a trading screen at Pakistan Stock Exchange. — Reuters/File

  • KSE-100 index falls by 24.96 points to close at 42,348.63.
  • Volumes decreased from 139.2m shares to 120.2m.
  • JS Research expects range-bound activity to continue.

KARACHI: Stocks Wednesday lost early gains to close a few notches lower as the anaemic rupee amid insufficient foreign exchange reserves confined investors to the sidelines.

Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Shares Index fell by 24.96 points or 0.06% to close at 42,348.63 points.

Arif Habib Limited said a range-bound session was witnessed at the PSX.

“The market opened in the green zone but the lack of investors’ participation drove the index down into the red zone and continued to trade in the same zone for most of the trading session,” the brokerage said.

According to the brokerage’s report, volumes remained dry on the main board; however, decent volumes were recorded in the third-tier stocks.

Sectors contributing to the performance include commercial banks (-79.9 points), technology and communication (-17.3 points), power generation and distribution (-18.2 points), chemical(-8.2 points), automobile assembler (-6.9 points).

Volumes decreased from 139.2 million shares to 120.2 million, down 13.7%, while the average traded value dropped by 7.9% to $20.80 million as against $22.58 million.

Stocks that contributed significantly to the volumes are WorldCall Telecom, Nishat Chunian Power Limited, Dewan Farooque Motors Limited, K-Electric, TRG Pakistan, and Pakistan International Bulk Terminal.

JS Research said going forward, “we expect range-bound activity to continue and recommend investors to avail any downside as an opportunity to buy in the technology, cement and textile sectors”.