PSX plummets on lockdown fears as Covid-19 cases soar
KARACHI: The Pakistan Stock Exchange (PSX) witnessed intense selling pressure as the surging coronavirus cases rattled investors and pushed the benchmark index over 1,000 points deep in the red.
The rising tally of infections across the country, particularly in Punjab, raised the alarm among major economies and stock markets. On Monday, Punjab’s provincial government announced smart lockdowns across various districts where the positivity ratio of Covid-19 is 12% or higher.
Moreover, the benchmark KSE-100 index seesawed as investors struggled to anticipate conclusions regarding the government’s stringent measures in the wake of the International Monetary Fund (IMF) program’s resumption.
The KSE-100 index plummeted from the moment trading began and nose-dived over 1,000 points to fall below the 45,000-mark. However, minimal buying activity at regular intervals helped the index recover some lost ground, though it still finished deep in the red. Weak investor sentiment restricted the index from entering the positive territory.
At close, the benchmark KSE-100 index recorded a decrease of 1,089.83 points, or 2.39%, to settle at 44,431.8 points.
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CEO of ABC, Khurram Shehzad, said the drop reflected investors’ concerns. And over the worsening of the Covid-19 crisis in Pakistan.
“In the past few days, Punjab has been worst hit from the calamity, and market participants are now expecting a lockdown in the province,” he said. “Since Punjab contributes significantly to the economy, a lockdown will not bode well for the market and Pakistan as a whole.”
Endorsing his views, AA Gold Commodities Director Operations Adnan Agar said that skyrocketing Covid infections. The looming fear of lockdown in Punjab dented investor sentiments at the bourse on Monday.
“Another factor fuelling the decline is the approval of the presidential ordinance. Which will end tax exemptions for major sectors of the economy,” he said. “Such a move is not in favor of the market; hence a fall is being witnessed.”
Overall trading volumes dropped to 523.9 million shares compared with Friday’s tally of 529.2 million. The value of shares traded during the day was Rs23.5 billion.
Shares of 408 companies were traded. At the end of the day, 37 stocks closed higher, 359 declined, and 12 remained unchanged.
Byco Petroleum was the volume leader with 80.2 million shares, losing Rs0.91 to close at Rs10.63. Pakistan Refinery with 49 million shares followed it. Losing Rs2.07 to close at Rs26.46, and Azgard Nine with 45.6 million shares, losing Rs0.02 Rs38.17.
