Stocks tumble 194 points on rising virus cases

Bears extended their control on the Pakistan Stock Exchange (PSX) on Wednesday, with the indices failing to sustain morning gains and closing in the red amid fears of another Covid lockdown.

Global equity markets displayed a mixed trend, whereas crude oil prices dipped lower from the previous close; WTI crude price declining 4.60pc to $37.75 while Brent crude price falling 3.70pc to $40.08.

"The investors have lately been discounting good corporate results due to concerns of rising Covid cases, as another lockdown might be imposed in future," said a report issued by AHL Ltd.

Gaining 305.50 points in early trade, the benchmark KSE100 Index recorded intraday high at 41,687.33. It, however, failed to maintain its flight and dropped to intraday low at 41,069.68 (312.15 points). The index finally settled lower by 194.97 points at 41,186.86.

Among other indices, the KMI30 Index plunged 695.80 points to end at 65,698.37, while the KSE All Share Index lost 137.33 points, closing at 28,976.13.

The overall market volumes fell from 481.02 million shares in the previous session to 368.42 million shares (23pc). Average traded value also declined by 18pc, from $114.8 million to $94.3 million. Unity Foods Ltd (UNITY +2.82pc), Pakistan International Bulk Terminal Ltd (PIBTL 0.38pc) and Hascol Petroleum Ltd ( HASCOL +1.34pc) led the volume chart, exchanging 60.25 million, 31.27 million and 26.88 million shares, respectively.

Sectors that dragged the benchmark index lower included banking (84.66 points), cement (66.72 points) and textile composite (43.88 points). Among the companies, Lucky Cement Ltd (LUCK 48.47 points), The Searle Company Limited (SEARL 39.35 points) and United Bank Ltd (UBL 29.71 points) dented the index the most.

Losing 1.44pc from its cumulative market capitalization, the pharmaceutical sector ended as session’s top loser, with The Searle Company Limited (SEARL 6.62pc), GlaxoSmithKline Consumer Healthcare Ltd (GSCKH 4.45pc) and Ferozsons Laboratories Limited (FEROZ 1.06pc) posting significant losses.

Meanwhile, in a notification to the exchange, Treet Corporation Ltd (TREET 0.65pc) announced that the company will enhance the capacity of “hygiene razor”. The board of directors has approved a CAPEX of

Rs250 million for this capacity enhancement.

On the financial side, Indus Motor Company Ltd (INDU 3.15pc) announced earnings per share of Rs23.48 for 1QFY21 (Rs16.78 last year); Atlas Honda Ltd (ATLH +0.61pc) declared an EPS of Rs8.08 for 2QFY21 (Rs4.60 in 2QFY20); Hub Power Company Ltd (HUBC +5.46pc) recorded an EPS of Rs2.51 for 1QFY21 (Rs1.24 in 1QFY20); Abbot Laboratories (Pakistan) Ltd (ABOT +1.64pc) posted an EPS of Rs10.07 for 3QFY19 (Rs2.71 last year); while Pakistan Stock Exchange Ltd (PSX +0.68pc) registered an EPS of Rs0.19 for 1QFY21 (Rs0.04 last year).