KARACHI
On the first day of its establishment, Pakistan Stock Exchange (PSX) witnessed bearish trend due to selling by local investors.
The benchmark KSE 100-index declined by 214.80 points to close at 32,320.05 points.
Regional markets were in the red yesterday, particularly China which declined by 5% (Shanghai). That coupled with weak international oil prices hurt local market sentiments, observed Muhammad Rizwan, head of sales of Topline Securities.
Total volume decreased 21% to 86m shares while traded value declined by 27% to Rs 5.2b.
Automobile stocks were in the limelight as Pakistan Automobile Manufacturers Association (PAMA) announced automobile sales numbers. PSMC gained 2 per cent, as it posted 3% MoM growth despite the year end factor. Interest was also seen in GHNI and HINO on the back of improved truck sale which helped both stocks to close up 5% and 2.5%, respectively, the analyst added.
Investors remained interested in selected cement stocks like DGKC and MLCF that gained 0.9% and 2.6% respectively.
Weak earnings outlook for the blue chip stocks impacted the sentiments, stated analyst Ahsan Mehanti.
Institutional support remained in cement stocks that are likely to gain from CPEC projects. Falling WTI crude prices below $33, political instability and foreign outflows at PSX played a catalyst role in bearish close.
Of total 309 traded companies in the session, 215 closed in decline, 72 in advance while 22 remained unchanged.
PIAF lauds launch of single
unified stock exchange
Staff Reporter from Lahore: The Pakistan Industrial and Traders Association Front (PIAF) has appreciated the launch of the single unified stock exchange of the country - Pakistan Stock Exchange Limited (PSX), which will go a long way towards sustainable development of Pakistan capital and financial markets.
PIAF acting chairman Tanveer Soofi said that a robust capital market can prove as a basic building block for a strong economy. In collaboration with the Securities and Exchange Commission of Pakistan and the State Bank of Pakistan, the government is striving to improve the outlook of stock markets.
Tanveer Soofi said that country’s capital markets have indeed achieved a significant milestone today. The unity displayed by the stakeholders for successful establishment of the PSX is very impressive, he added. He stated that it is heartening to note that the process of integration of the stock exchanges has been completed without disagreement or conflict.
PIAF vice chairman Shahzeb Akram said that creation of a strong, vibrant and competitive financial and capital market was vital for high economic growth. The new PSX has also sent a strong message that the nation stands united on important matters and that there is no lack of commitment and courage by the stakeholders.
The establishment of PSX is an unprecedented event in our history. It is expected that the unification of the trading platforms will create multiple benefits for the market.
Shahzeb Akram asked the government to ensure that the PSX should be a completely revamped and progressive exchange to attract global strategic investment and benchmarked internationally as one of the choicest investment destinations.
PIAF leaders said that business community is dedicated towards achieving the goals of economic growth and prosperity, eradication of poverty, and development of the social and economic strata of the country.
