Pakistan equities closed Tuesday on a bearish note with benchmark KSE-100 Index shedding 242 points, closing at 36,784 levels, down 0.7 percent.
The local bourse traded and remained negative making a low of -318 points. Market remained volatile as the final round of talks between the IMF and Pakistan over a potential bailout package which is expected to be signed next month is underway, said
Danish Ladhani, an equity analyst.
An equity analyst at IIS Securities said the KSE-100 index continued its bearish trend throughout the session given ongoing meeting with IMF to finalize the proposed bailout package over the next 10 days. News suggest that Pakistan would be signing USD 6-8 billion bailout agreement with IMF expected to be finalized by May10.
K-Electric (+1.0%) disclosed its material information where there company is planning to set up a 700MW power project with the assistance of a Chinese engineering firm, calling it a milestone project in the economic cooperation between China and Pakistan.
Moreover HASCOL (+1.0%), in its material information has denied allegations of tax fraud after it was reported that the company was involved in tax evasion of Rs3.9 billion.
Cements were the major laggards in the day’s trading session where LUCK (-0.7%), FCCL (-2.7%) and DGKC (-2.0%) closed in the red as the reports aired that the manufacturers in the latest meeting failed to reach to a consensus on pricing and quota allocation.
Mixed sentiments were seen in the Financials where HBL closed in the red, while MCB (+0.3%) and UBL (+1.2%) closed in the green zone. HUBC (-2.1%), PPL (-1.4%), OGDC (-1.2%), PSO (-2.6%), ENGRO (-0.9%), POL (-1.2%) and HBL (-0.7%) were top scrip to cumulatively contribute -147 points to the negative closing.
Traded value stood at $33 million, down 27 percent and volume stood at 75 million shares, down 38 percent. Major contribution to total market volume came from UNITY (-1.0%), PAEL (-1.9%), BOP (-1.4%), MUGHAL (-2.2%) and PIOC (-1.3%). Ladhani expects market to remain volatile ahead and recommend investors to stay cautious in the short run.