STOCK EXCHANGES AROUND THE WORLD
Bears return into Pakistan market
Investor sentiment on Friday took a hit at the bourse following four days of bullish momentum as the benchmark KSE-100 index dived 534 points in the wake of placing of Pakistan on the Asia-Pacific Group’s (APG) enhanced monitoring list.
The action was taken after the APG found Islamabad’s performance unsatisfactory on three-fourths of the Financial Action Task Force’s (FATF) recommendations, which sparked panic selling at the Pakistan Stock Exchange. The first session began on a positive note as the KSE-100 index made handsome gains and crossed the 32,000-point mark for a brief period. However, selling pressure soon emerged and the first session ended with a loss. At close, the benchmark KSE 100-share Index recorded a decrease of 534.43 points, or 1.68percent, to settle at 31,350.02 points.
Overall, trading volumes decreased to 230.7 million shares compared with Thursday’s tally of 261.7 million. The value of shares traded during the day was Rs7.2 billion. Shares of 358 companies were traded. At the end of the day, 130 stocks closed higher, 213 declined and 15 remained unchanged. Unity Foods was the volume leader with 18.9 million shares, losing Rs0.15 to close at Rs9.33.
US stocks tumbles as trade war escalates
Wall Street tumbled on Friday after the US-China trade war escalated in dramatic fashion, with President Donald Trump demanding that American companies seek alternatives to doing business with China after Beijing announced its own slate of retaliatory measures.
All three major US stock indexes ended the session sharply lower, posting their fourth consecutive weekly declines.
The latest exchanges in the long-running tariff row triggered a broad-based sell-off that hit shares of companies with high exposure to China the hardest, such as chipmakers and other top technology names. Dow Jones Industrials components Intel Corp and Apple Inc dropped 3.9% and 4.6%, respectively.
The Dow Jones Industrial Average fell 623.34 points, or 2.37%, to 25,628.9, the S&P 500 lost 75.84 points, or 2.59%, to 2,847.11 and the Nasdaq Composite dropped 239.62 points, or 3%, to 7,751.77.
FTSE 100 falls after fed minutes, pound rally
London’s FTSE 100 fell on Thursday as the latest signals from the US Federal Reserve dampened hopes of hefty interest rate cuts, while exporter stocks slipped as the pound rose after German Chancellor Angela Merkel’s comments on the Brexit deal.
The FTSE 100 shed 1.1 percent, while the FTSE 250 was roughly flat. BAT gave up 1.5 percent, hit by the gains in sterling as well as a probe by a US House panel into e-cigarette manufacturers over the health impact of their products. Imperial Brands lost 2.7 percent, as the stock also traded ex-dividend. UAE-based healthcare provider NMC Health was the standout performer, surging more than 18.5 percent for its best day ever, after sources told Reuters that two groups, including one backed by China’s Fosun, were competing to buy a 40 percent stake in the company worth up to $1.9 billion. The company also posted half-year results and announced plans to buy back up to $200 million worth of shares.
Germany’s shares end lower
Germany stocks were lower after the close on Friday, as losses in the Technology, Chemicals and Insurance sectors led shares lower.
At the close in Frankfurt, the DAX declined 1.15 percent, while the MDAX index fell 0.81 percent, and the TecDAX index fell 1.03 percent. Falling stocks outnumbered advancing ones on the Frankfurt Stock Exchange by 472 to 198 and 86 ended unchanged.
The DAX volatility index, which measures the implied volatility of DAX options, was up 9.74 percent to 20.50. Gold Futures for December delivery was up 1.86percent or 28.05 to $1536.55 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in October fell 3.31 percent or 1.83 to hit $53.52 a barrel, while the October Brent oil contract fell 2.04 percent or 1.22 to trade at $58.70 a barrel.
France stocks decline
France stocks were lower after the close on Friday, as losses in the Foods & Drugs, Gas & Water and General Financial sectors led shares lower.
At the close in Paris, the CAC 40 lost 1.14percent, while the SBF 120 index declined 1.10 percent. Falling stocks outnumbered advancing ones on the Paris Stock Exchange by 346 to 205 and 96 ended unchanged. The CAC 40 VIX, which measures the implied volatility of CAC 40 options, was up 7.24 percent to 18.76. Gold Futures for December delivery was up 1.90 percent or 28.65 to $1537.15 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in October fell 3.56 percent or 1.97 to hit $53.38 a barrel, while the October Brent oil contract fell 2.34 percent or 1.40 to trade at $58.52 a barrel. EUR/USD was up 0.54 percent to 1.1138, while EUR/GBP rose 0.43 percent to 0.9079. The US Dollar Index Futures was down 0.46percent at 97.613.
Japanese stocks move higher
Japan stocks were higher after the close on Friday, as gains in the Paper & Pulp, Railway & Bus and Real Estate sectors led shares higher. At the close in Tokyo, the Nikkei 225 gained 0.40 percent. Rising stocks outnumbered declining ones on the Tokyo Stock Exchange by 1770 to 1665 and 295 ended unchanged. The Nikkei Volatility, which measures the implied volatility of Nikkei 225 options, was unchanged 0.00 percent to 17.56.
Crude oil for October delivery was up 0.05 percent or 0.03 to $55.38 a barrel. Elsewhere in commodities trading, Brent oil for delivery in October rose 0.22 percent or 0.13 to hit $60.05 a barrel, while the December Gold Futures contract fell 0.25 percent or 3.75 to trade at $1504.75 a troy ounce. USD/JPY was up 0.22 percent to 106.66, while EUR/JPY rose 0.14 percent to 118.06. The US Dollar Index Futures was up 0.19 percent at 98.250.
India’s Sensex up 228 points
Indices settled higher on Friday ahead of finance minister Nirmala Sitharaman’s media address, scheduled later in the day, wherein measures to revive the economy, clarity on the possible rollback of super-rich tax on FPIs, and implementation of direct tax code (DTC) are expected.
That apart, investors were also eyeing Federal Reserve chair Jerome Powell’s speech at Jackson Hole, Wyoming for clarification on whether the US central bank remains on course to deliver another interest rate cut in next month.
The benchmark S&P BSE Sensex settled 228 points, or 0.63 per cent, higher at 36,701 levels lifted by gains in metals, and public sector banks’ stocks. Vedanta, YES Bank, ONGC, and M&M were the top gainers at the 30-share index, while IndusInd Bank, ITC, ICICI Bank, and Power Grid ended as top laggards. The broader Nifty50, too, closed at 10,829-mark, up 88 points or 0.82 per cent. The Sensex and Nifty50 settled nearly 600 and 192 points higher, respectively from the day’s low.