Staff Reporter
Karachi
The bear-run continued at the Pakistan Stock Exchange on Thursday and the KSE-100 index extended losses by 325 points as the downgrade of Pakistan’s growth projection by the International Monetary Fund (IMF) weighed on investors’ mind.
On Wednesday, the IMF revised down its growth prediction for Pakistan for fiscal year 2020-21 to 1% from the previous estimate of 2%, which dampened interest at the bourse.
Thursday trading began with a steep dip and weak investor sentiment restrained the market from posting any gains. Selling by market participants gained pace as the session progressed. A buying spree towards the end of the session failed to wipe out the losses.
At close, the benchmark KSE-100 index recorded a decrease of 325.02 points, or 0.95%, to settle at 33,709.63 points.
Pakistan Petroleum (-2.1%), Oil and Gas Development Company (-2.1%) and Pakistan Oilfields (-0.6%) in the exploration and production sector remained in the negative zone as oil prices fell in the international market on the back of swelling US crude stockpiles and a surge in coronavirus cases.
Furthermore, Engro (-0.5%), Fauji Fertiliser Company (-1.5%), HBL (-0.8%), Oil and Gas Development Company (-2.1%), Hubco (-2.4%), MCB (-2.1%), Pakistan Petroleum (-2.1%) and Lucky Cement (-0.8%) were the index movers.
Arif Habib Limited, in its report, stated that the domestic market followed the downtrend witnessed in global stock markets and especially took negative cue from international crude prices that shed $3 per barrel overnight.
Selling activity was seen across the board. Post-session, the State Bank announced further rate cut of 100 basis points to 7%, which explained the more-than-usual negativity in banking stocks, particularly HBL, MCB and Bank Alfalah.
