KSE-100 sheds 325 points on lower growth forecast
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 percent from the previous estimate of 2 percent, which dampened interest at the bourse. At close, the benchmark KSE-100 index recorded a decrease of 325.02 points, or 0.95 percent, to settle at 33,709.63 points. Overall, trading volumes dipped to 168.4 million shares compared with Wednesday’s tally of 195.7 million. The value of shares traded during the day was Rs5.2 billion. Shares of 355 companies were traded. At the end of the day, 100 stocks closed higher, 229 declined and 26 remained unchanged. WorldCall Telecom was the volume leader with 19.6 million shares, gaining Rs0.07 to close at Rs0.87. It was followed by Hum Network with 13.4 million shares, gaining Rs1.08 to close at Rs15.77 and TRG Pakistan with 12.5 million shares, losing Rs0.07 to close at Rs27.58. Foreign institutional investors were net sellers of Rs360.6 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.
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Wall Street ends choppy session higher
Wall Street’s main indexes closed higher in choppy trading on Thursday, with bank stocks soaring ahead of annual stress test results and helping to offset investor jitters over alarming increases in new coronavirus cases.
The recently battered S&P 500 banks sub-index led the gainers for the session after U.S. banking regulators eased rules and investors waited for results of the sector’s annual stress test, which helps determine dividend policies.
The bank index had fallen 19 percent from its recent high on June 5 to Wednesday’s lowest point. It closed up 3.6 percent on Thursday.
But investors remained nervous throughout the day as the number of new virus cases in U.S. states grew, especially in the West and South.
Texas Governor Greg Abbott said he was halting his state’s phased economic reopening in response to a jump in COVID-19 infections and hospitalizations.
And stocks wobbled temporarily late in the session after Apple Inc said it would close 14 stores in Florida again due to rising COVID-19 cases after other re-closures in Houston, Arizona, South Carolina, and North Carolina.
A flare-up in virus cases in recent days has taken some wind out of a Wall Street rally powered by hopes of a quick economic recovery and massive government stimulus efforts. However, the benchmark S&P 500 still closed less than 9 percent below its Feb. 19 record.
While bank stocks provided one of the biggest boosts on Thursday, Michael James, managing director of equity trading at Wedbush Securities in Los Angeles, said investors were buying the dip after a pullback in stocks on Wednesday.
The Dow Jones Industrial Average rose 299.66 points, or 1.18 percent, to 25,745.6, the S&P 500 gained 33.43 points, or 1.10 percent, to 3,083.76 and the Nasdaq Composite added 107.84 points, or 1.09 percent, to 10,017.
All the three major indexes had opened Thursday’s session lower after data showed the number of Americans filing claims for unemployment benefits fell less than expected last week, likely as hiring by reopening businesses is being partly offset by a second wave of layoffs.
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France stocks higher at close of trade; CAC 40 up 0.97pc
France stocks were higher after the close on Thursday, as gains in the Foods & Drugs, Gas & Water and General Financial sectors led shares higher.
At the close in Paris, the CAC 40 gained 0.97 percent, while the SBF 120 index climbed 1.04 percent.
Rising stocks outnumbered declining ones on the Paris Stock Exchange by 288 to 263 and 102 ended unchanged.
The CAC 40 VIX, which measures the implied volatility of CAC 40 options, was down 4.32 percent to 32.44.
Gold Futures for August delivery was down 0.18 percent or 3.15 to $1771.95 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in August rose 2.10 percent or 0.80 to hit $38.81 a barrel, while the August Brent oil contract rose 2.21 percent or 0.89 to trade at $41.20 a barrel. EUR/USD was down 0.20 percent to 1.1227, while EUR/GBP fell 0.19 percent to 0.9040. The US Dollar Index Futures was up 0.19 percent at 97.317.
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Sensex ends lower as ‘fatigue’ catches up. what analysts say
Indian shares closed slightly lower on Thursday in a volatile session as downbeat growth outlook from the IMF and a surge in COVID-19 cases weighed on the sentiment. The NSE Nifty 50 index ended down 0.16 percent to 10,288.90 and the benchmark S&P BSE Sensex slipped 26 points to 34,842.10. The Nifty fast moving consumer goods index rose 2.12 percent, while the pharma index gained 0.8 percent. ITC Ltd ended up 5.6 percent and was the top gainer and boost in the Nifty 50 index. Some selling pressure was seen in IT stocks with HCL, TCS and Infosys falling between 1.5 percent and 2 percent.
The Nifty 50 index has surged about 37 percent after hitting a four-year low in March, as the economy gradually reopened and foreign investor poured money due to massive global liquidity even as coronavirus cases continue to surge across the world.
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Japan stocks lower at close of trade; Nikkei 225 down 0.07pc
Japan stocks were lower after the close on Wednesday, as losses in the Paper & Pulp, Railway & Bus and Real Estate sectors led shares lower. At the close in Tokyo, the Nikkei 225 lost 0.07 percent. Falling stocks outnumbered advancing ones on the Tokyo Stock Exchange by 2210 to 1278 and 182 ended unchanged. The Nikkei Volatility, which measures the implied volatility of Nikkei 225 options, was unchanged 0 percent to 28.90. Crude oil for August delivery was up 0.05 percent or 0.02 to $40.39 a barrel. Elsewhere in commodities trading, Brent oil for delivery in August rose 0.30 percent or 0.13 to hit $42.76 a barrel, while the August Gold Futures contract rose 0.19 percent or 3.45 to trade at $1785.45 a troy ounce. USD/JPY was up 0.11 percent to 106.63, while EUR/JPY rose 0.06 percent to 120.49. The US Dollar Index Futures was up 0.14 percent at 96.743.