Stock market finishes week on a low

KARACHI - Pakistan Stock Exchange (PSX) plunged on weekend amid reports that Pakistan is being placed on the grey-list by the Financial Action Task Force (FATF). The benchmark KSE 100-index shed 261 points and finished the week at 43,267 points.Market started the day at a positive note, carrying on with the previous day’s closing of up 600 points; however, investors participated with a view of “sell on strength”. Later during the day, the news of FATF putting Pakistan back on grey list made the rounds, which caused the market to go down. Cement & fertilizer sectors got the major part of the brunt among other blue chip scrips. News of Pak Elektron (PAEL) being debarred by World Bank for 33 months also caused the stock price to hit lower circuit which persisted till market close. Investors were concerned about the impact of Pakistan being put back on FATF, however, government’s actions in the next few days are expected to calm the nerves with market to trade on positive note next week, market participants said.Sectors contributing to this decline included cement that shed 45 points, fertilizer 43 points, OGMCs 23 points, commercial banks 21 points, and autos that took away 19 points from the index. Volumes increased significantly by 28% DoD from 190.6m shares to 244.5m shares. Average traded value also increased by 11% DoD to reach $81.9m. Stocks that contributed significantly to the volumes included DSL, ANL, TRG, LOTCHEM and BOP, reflecting 33% of total volumes. Scripts that contributed positively included POL that added 52 points, MCB 18 points, KAPCO 7 points, BWCL 5 points and BATA that contributed 4 points to the index gain. Stocks that contributed negatively included DAWH that eroded 35 points, PPL 30 points, DGKC 20 points, PAEL 14 points and OGDC that took away 14 points respectively from the index.

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