Stocks snap bullish streak over Moody’s

A four-day winning streak ended at the Pakistan Stock Exchange on Friday as a Moody’s report sparked concerns among investors, who remained cautions while trading stocks. The rating agency downgraded Pakistan’s credit rating to Caa1 from B3. The stock market expected further deterioration in the economic outlook of the country. Despite pessimism, the benchmark KSE100 index registered a steady buying activity during the first half, which helped push the market upwards. However, in the second half, the bourse succumbed to the selling pressure as profit-taking emerged that dragged the index into the red zone. At close, the benchmark KSE-100 index recorded a decrease of 75.32 points, or 0.18%, to settle at 42,085.25. Topline Securities, in its report, said Pakistan equities witnessed a mixed day. Initially, the market opened on a negative note in the backdrop of Moody’s credit rating action where it downgraded Pakistan’s rating to Caa1 from B3. During the day, the KSE100 index touched an intra-day low at 41,992 (-169 points, or 0.40%) and an intra-day high at 42,389 (+229 points, or 0.54%). It eventually settled at 42,085 (-75 points, or 0.18%) for the day. Fertiliser, power, food, tech and banking-sector stocks contributed positively to the index where Engro Corporation, Kot Addu Power Company, Frieslandcampina Engro Pakistan, Systems Limited and Habib Bank added 66 points cumulatively, it said.