Stocks slide as funds turn bearish

Stocks fell on Tuesday with most of energy and financial shares dropped as receding fund inflows dampened investors’ appetite, dealers said.

Reports that Asia-Pacific Group (APG) of the Financial Action Task Force (FATF) will analyse Pakistan’s targets at a meeting due in Bangkok from September 8 to 10 also caused selling pressure.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index lost 0.82 percent or 247.61 points to close at 29,809.68 points level. KSE-30 shares index followed suit with a low of 0.87 percent or 123.05 points to end at 13,996.81 points level.

Of 338 active scrips, 89 up, 230 retreated, and 19 remained unchanged. The ready market volumes stood at 64.038 million shares, as compared with the turnover of 77.447 million shares in the previous session.

Analyst Madiha Javed at Ismail Iqbal Securities said the benchmark index was initially positive “but failed to sustain early gains and closed down”. Commercial banks and cements remained top draggers of the index, cumulatively shedding 119 points.

Analyst Ahsan Mehanti at Arif Habib Corporations said stocks fell across the board amid consolidation at PSX in post earning season. “Investor booked profits as concerns loomed over outcome of FATF evaluations next month,” Mehanti added.

Another analyst said the market has been search of positive development from the economic front. “Investors are only hearing that economy is under stress on rising trade deficit and fiscal deficit,” the analyst said. “Lowering of tax collection during the first two months of the current fiscal year also weighed heavily on the investors mind.”

Traders said October meeting in Paris on FATF issue also in the itinerary of the investors to decide fresh long-term commitments. Energy stocks were down because of fall in crude oil prices globally, moreover the sales numbers of petroleum products also registered declines, erasing share values.

Brokerage Arif Habib Limited in a post market note said OGDC and PPL performed well earlier in the session and showed gains over yesterday’s closing, “however, profit booking caused the stocks to retreat with a closure below LDCP”.

Moreover E&P, cement, fertilizer and banking sector added fuel to selling pressure. Cement sector led the volumes table with 11 million shares, followed by technology (9.2 million) and E&P (4.7 million). Among scrips, MLCF garnered 6.2 million shares, followed by WTL (4.5 million) and UNITY (4.2 million), brokerage house added.

The highest gainers were Murree Brewery, up Rs22.50 to close at Rs764.00/share, and J.D.W.Sugar Rs10.03 to finish at Rs290.03/share. Companies that booked highest losses were Colgate Palmolive, down Rs86.99 to close at Rs1663.01/share, and Wyeth Pakistan Limited down Rs20.00 to close at Rs580.00/share.

Maple Leaf recorded the highest volumes with a turnover of 6.189 million shares. Whereas the scrip lost Rs0.47 to end at Rs16.20/share. The lowest volumes were witnessed in Pakistan Elektron recording a turnover of 1.866 million shares, whereas the scrip lost Rs0.22 to end at Rs14.80/share.