PSX recovers after dreadful morning
KARACHI: Pakistan Stock Exchange (PSX) crash-dived in early trading with KSE-100 index losing 4.09% or 1,216.89 points. The index breached the 30,000 psychological mark and traded at 29,784.60.
The stock exchange was braced for the turmoil on Monday morning as regional markets went into a tailspin over crude oil prices. Global crude oil prices briefly dipped under $28 after sanctions were lifted from Iran over the weekend, indicating towards markets already drowning in oil will see fresh tsunami of supplies. Another dilemma faced by the exchange was the slow-down in China and growing rumors of FIA investigations. Investors picked cherries at discounted prices ahead of the result season and the KSE-100 index recovered 843.08 points by end of the session to close at 30,628.40 (-373.09 points).
NetSol Technologies Limited (NETSOL +4.99%) and TRG Pakistan Limited (TRG +4.98%) hit the upper cap flying from floor price. The advancers to decliner’s ratio stood at 94 versus 222.
KMI 30 plummet 2,215.90 points to reach 50,619.24 but bounced back to 52,226.91 (-608.23pts). KSE-All Share depreciated to a low of 718.83 points (-3.43%) before settling at 21,403.47 (-254.07 points).
The market volumes surged 52.84% to 210.253million. Cement sector ruled with 28.567million shares traded. The sector moved with the flow of the market and remained weak despite the prime minister having addressed concerns of provinces over the China Pakistan Economic Corridor (CPEC). Lucky Cement Limited gained (LUCK) +0.38%, Maple Leaf Cement Factory (MLCF) edged up 0.33% while Dera Ghazi Khan Cement Factory (DGKC), volume leader of the sector, dropped 1.91%.
Technology and communication sector was next on volume table total volume of 24.559million. Hum Network Limited (HUMNL +7.38%), TRG Pakistan Limited (TRG +5.28%) and NetSol Technologies Limited (NETSOL +5.01%) all appreciated over 5%. On the contrary, Pakistan Telecommunication Company (PTC) shed 4.10%.
The oil and gas exploration sector traced international crude oil prices and touched new lows. All four companies sunk to lower lock price trading intra-day. Oil and Gas Development Company (OGDC -2.41%) closed at Rs 95.58, Pakistan Oilfields Limited (POL -4.32%) at Rs 189.67, Pakistan Petroleum Limited (PPL -2.04%) at Rs 101.08 and Mari Petroleum Limited (MARI -0.89%) at Rs 575.77.
Ferozsons Laboratories Limited (FEROZ) knocked off 4.98% after meeting of Drugs Pricing Committee. The committee approved price fixation of Sofosbuvir at Rs 9,999 taking the six months course at Rs 59,994. This breaks the monopoly held by FEROZ under the brand name of Sovaldi. New price is 70% lower than that charged by FEROZ.
Foreigners continued selling. They ended the session as net sellers of $7.98 million. Local individual investors and mutual funds also recorded net outflows of $4.41 million and $2.23 million respectively.