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KSE-100: increasing cases of fear of Covid’s stricter fuel block as index losses deepen

The stock continued to decline and increased losses for the third consecutive day on the Pakistan Stock Exchange (PSX), with fears about tougher blocking measures restricting the index.

On Friday, the kse-100 benchmark dropped to an intraday low of 566 points, to hit the level of 44.363,40, however, in the middle of the session the index reduced some of the losses.

During the session, the market was dominated by fears of increased Covid cases and more stringent blocking measures expected at the NCOC meeting, after the Federal Minister for Planning and Development and the Head of the National Command and Operation Center (NCOC) Asad Umar earlier this week released an alert and said that if this worsens the situation of the coronavirus in the country, the government will be forced to impose further restrictions.

In addition, the market also witnessed selling pressure during the trading session due to the upcoming rolling week.

Ahead of results, the series of unexpected financial results by Habib Metropolitan Bank Limited, Fauji Cement Company Limited and Kot Addu Power Company affected some of the sectors and forced investors to trade cautiously.

During the session, Market Capital decreased by Rs.44.93 billion, while the total traded value also decreased by 4.10 billion to Rs.11.78 billion.

The volume in kse-100 was reduced from 139 million shares registered in the previous session to 96.99 million shares, while the volume of all shares decreased from 328 million shares registered in the previous session to 240 million shares.

The volume chart was led by Ghani Global Limited followed by World Call telecom Limited TRG Pakistan. The scripts exchanged 38.78 million, 24.11 million and 23.64 million shares, respectively.

According to the National Clearing Company of Pakistan Limited (NCCPL), foreign investors were net buyers of $ 2.56 million in shares.

Among local investors, mutual funds and individuals led the sales chart, which discharged $ 4.26 million, $ 0.87 million in shares.

During the session, the sectors that lowered the index were Oil and Gas Exploration Companies with 54 points, Chemical with 40 points, Fertilizers with 38 points, Energy Generation and Distribution with 32 points and Textile Compound with 28 points. Among the scripts, the largest number of points removed from the index was by Oil & Gas Development Company Limited which removed the index from 31 points followed by Colgate Pakistan with 31 points, Hub Power Company with 27 points, ENGRO with 16 points and Habib Bank Limited with 12 points.

However, the sectors that raised the index were Technology and Communication with 37 points, Insurance with 14 points, Engineering with 7 points, Refinery with 4 points and Miscellaneous with 2 points. Among the scripts, the highest number of points added to the index was for TRG Pakistan who contributed 49 points followed by Habib Metropolitan Bank Limited with 30 points, Adamjee Insurance Company Limited with 15 points, National Bank of Pakistan with 12 points and Pakistan Stock Exchange with 5 points.

The shares have witnessed very limited activity over the past two months, with the KSE-100 averaging at the level of 45,000. During the week, the index closed at 44,707 points after registering a drop of 1.3%. The index registered an increase of 45,627 points and a decrease of 44,363 points, respectively, despite strong announcements of corporate profits.

During the week, pessimistic feelings prevailed due to concerns about the NCOC meeting for a more rigid application of the blockade due to the increase in cases from Covid. In addition, average trading volumes decreased by 10 percent to close at 333 million shares and the trading value also decreased by 3 percent to an average of $ 167 million.

However, during the week, a flow of positive news maintained momentum, which was the rollover of a $ 2 billion repayment of the Abu Dhabi loan after an official three-day visit by UAE diplomats.

Furthermore, although Tehreek and Labaik Pakistan led protests, it made a difference during the first day of the week, however, after his announcement to cancel his national protest on Tuesday, after the government accepted his request to submit a resolution to the Assembly. National, the Market felt some relief.

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