It is quite evident that the stock market has been struggling for past few months due to uncertain political environment. Now the submission of JIT report and postponement of Supreme Court’s decision to next week have spread negative sentiments among the investors. It was recently reported that KSE-100 index dropped 885 points at the end of the week and closed at 44,337 points.
The market witnessed one of the worst sessions since 2009, when the bourse tanked 4.7% and hit the lowest of that calendar year to close at 43,043 points.
According to Arif Habib Limited, the drop was initiated by cements (176 points) because of the unimpressive cement dispatch numbers for June, followed by power generation and distribution (89 points); fertilizers (86 points); and automobile assemblers (84 points) as automobile sales dropped in June due to shorter working days during Ramazan.
According to AKD Securities, main losers during the week were: HCAR (12.64%), PSMC (10.56%), CHCC (9.36%), ICI (7.08%) and LOTCHEM (6.93%). Meanwhile, major gainers during the week were: GWLC (4.43%), EFERT (3.99%), NBP (3.93%) PPL (2.99%) and FFC (2.47%).
Moreover, volumes increased by 5.2% over the last week to 175 million shares in intraday moves. For those who are wondering, traded value increased by 3.5% to PKR 9.7 billion. Those who were leading in terms of volume during the week were KEL (68.63m shares), TRG (55.32m shares), BOP (46.74m shares), EPCL (34.74m shares) and ASL (29.47m shares).
Among the local players, individuals remained major sellers of $9.96 million while insurance firms were the largest domestic buyers of shares valued at $15.7 million.
It appears that the market may not be able to recover until Supreme Court announces its decision on the case involving the sitting Prime Minister Nawaz Sharif and his family. In any case, we’ll update our readers about the latest trends in the stock market.