Stocks on Monday pulled off a positive close amid sporadic month-end trade as the political pandemonium continued to give investors cold feet.
\nPakistan Stock Exchange\u2019s (PSX) benchmark KSE-100 shares index gained 124.33 points or 0.30% to end at 41,264.66 points.
\nJS Research said the ongoing uncertain political situation kept investors from active market participation.
\n\u201cWe expect range-bound activity to continue and therefore recommend investors to wait for political clarity before availing this downside as an opportunity to build fresh positions,\u201d JS analysts said in their market report.
\nVolumes shrank from 177.7 million shares to 97.5 million (-45.2% day-on-day), while average traded value plunged by -45.9% to $11.3 million against $20.9 million.
\nStocks that contributed significantly to the volumes were WorldCall Telecom, G3 Technologies Limited, Silkbank Limited, K-Electric, and Cnergyico PK Limited.
\nAs many as 332 companies were active in the session, of which 167 posted gains, 135 losses, and 30 remained unchanged.
\nArif Habib Limited (AHL) said the PSX closed higher despite low investor participation.
\n\u201cRising political temperatures dried up the volumes in the mainboard as third-tier stocks continued to be the volumes leaders,\u201d the brokerage said in its report.
\nSectors that lifted the index included technology and communication (46.7 points), power generation and distribution (32.5 points), cement (21.5 points), exploration and production (16.2 points), and automobile assemblers (12.1 points).
\nStocks up in October
\nAccording to AHL, the 100-Index remained range-bound in the outgoing month, closing at 41,265 points, up by 0.3% or 136 points.
\nInitial excitement at the bourse was led by the rupee\u2019s noteworthy recovery \u2014 closing at Rs220 per dollar this month as compared to Rs239 per dollar in September \u2014 with Finance Minister Ishaq Dar vowing to tame inflation and control the parity.
\nAlthough, the momentum could not be sustained as Moody\u2019s cut Pakistan\u2019s sovereign credit rating from B3 to Caa1 due to increased risks related to liquidity and external vulnerability.
\nMoreover, a statement from US President Joe Biden casting doubts on Pakistan\u2019s ability to protect its nuclear assets made headlines. However, a clarification by the White House later cleared some air.
\nADB approved a $1.5 billion financing support under its BRACE programme. Pakistan was also taken off the Financial Action Taskforce’s (FATF) grey list in the month.
\nDepleting foreign reserves continued to pressure the rupee. Since the start of the PTI\u2019s long march, the market has not moved much as investors await clarity on the political front.
\nAverage volumes during October 2022 settled at 277 million shares, up 58% over September, while traded value swelled 25% to $36 million.
\nForeign investors bought $14.6 million worth of equities in technology and exploration and production sectors, while net-selling of $4.8 million, $2.1 million, and $1.8 million was witnessed in banks, other sectors, and fertiliser sectors, the AHL report said.<\/p>\n","protected":false},"excerpt":{"rendered":"
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