KARACHI: Pakistani equities on Monday plunged by 776 points, or 1.9 percent, in the absence of triggers, a spike in COVID-19 cases and lower international oil prices, equity analysts said.
“Stocks closed sharply lower amid a plunge in global crude prices and slump in global equities amid fears over the outcome of second wave COVID-19 pandemic,” Ahsan Mahanti, the chief executive of Arif Habib Corporation, told Arab News. “Foreign outflows and IMF forecasts over subdued economic growth rate for fiscal year 2021 at 0.5 percent and over leveraging played a catalyst role for bearish close.”
At the opening of the trading session, the market continued its downtrend trend following the end of earnings season and rising COVID infection cases in the country. Oil in the international market plummeted more than four percent as countries renewed restrictions to curb a second wave of coronavirus infections, which also exerted pressure on the already depressed market.
Pakistan on Monday reported the highest rise in coronavirus cases in a single day since July 26, with 1,123 new infections taking the total to 335,093 cases with 6835 deaths, including 12 in the last 24 hours.
The stock market’s benchmark KSE 100 index made an intraday low of 1,109 points to close at 39,112 level. Though the market saw signs of intermittent recovery, selling pressure kept index recovery in check. Selling was observed across the board, however, and brisk buying was seen in AGHA post listing, which took the stock price to the upper circuit, according to JS Research and Arif Habib Limited (AHL).
During the session, volumes declined from 541.8 million shares to 322.3 million shares, showing a decline of 41 percent on a day to day basis. Average traded value also declined by 41 percent to $74.7 million.
Analysts say upbeat data on 22.6 percent growth in exports of the pharmaceutical sector for July-September 2020, 5.2 million ton record cement sales and 41 percent exports growth in September 2020 invited mid-session support.
Pakistan’s de facto commerce minister, Abdul Razak Dawood on Monday said Pakistani exports had crossed the $2 billion mark despite contraction in major markets.
“Our exports have maintained the growth trend in October 2020. Our exports have crossed the 2 billion mark after July 2020 and are back on track to pre-COVID- 19 levels,” Dawood said in a tweet. “This is despite the contraction in our major markets due to COVID-19 and uncertainty created by recent resurgence of the COVID-19 pandemic.”
Earlier on Monday, Dawood said pharmaceutical exports had increased by 22.6 percent to $68.1 million in the first quarter of the current fiscal year compared to $55.6 million in the same period last year.
