Karachi: Pakistan stocks took a down turn after Biden-fuelled Rally yesterday, as the investors remained worried over resurgence of COVID-19 in China and cautious before the policy rate announcement by State Bank of Pakistan (SBP).
KSE-100 index lost 81 points at the end of first trading session to 45,903.36 points.
The market opened in positive and the index reached up to 46,116.85 points with a jump of 130 points in the first hour of the trade. However, the investors adopted a cautious approach on the back of news regarding the resurgence of COVID-19 cases in China which increased pressure on prices. On the other hand, market approaching the weekend and the policy rate announcement by SBP also convinced investors to lighten portfolios.
It seems quite normal for the markets to behave like this after the rally and in a little uncertain situation, traders and researchers said. It almost a regional trend as Asian markets fell on Friday as investors took a breather following a strong week for global equities as Joe Biden took up as US president. Oil prices were also on downturn today.
Oil prices dropped on Friday, retreating further from an 11-month high hit last week, weighed down by worries that new pandemic restrictions in China will curb fuel demand in the world’s biggest oil importer.
U.S. West Texas Intermediate (WTI) crude futures dropped 53 cents, or 1%, to $52.60 a barrel at 0445 GMT, after slipping 18 cents on Thursday.
Brent crude futures fell 45 cents, or 0.8%, to $55.65 a barrel, erasing a 2 cent gain on Thursday.
The commercial hub of Shanghai reported its first locally transmitted cases in two months on Thursday, and Beijing is urging people not to travel during the upcoming Lunar New Year holidays.