Stocks pare gains on profit-taking amid new political pains

Stocks on Wednesday lost to a burst of profit-taking amid fears of an intense political showdown after the country’s two main opposition parties joined forces against the near 6-month old incumbent regime that is struggling to deliver on a highly vulnerable economic front, dealers said.

Analyst Ahsan Mehanti from Arif Habib Corporation said equities remained bearish in thin trade on institutional profit-taking amid ongoing political and economic uncertainty.

“Investor concerns over slide in growth rate, pending circular debt, and uncertainty over terms of IMF (International Monetary Fund) bailout package weighed on the market,” Mehanti added.

He said auto and textile stocks outperformed amid Economic Coordination Committee’s (ECC) approvals on checks over imported vehicles and allowance of duty free cotton imports.

Pakistan Stock Exchange’s (PSX) benchmark KSE-100 shares index lost 0.86 percent or 342.24 points to close at 39,271.94 points level, while KSE-30 shares index hit a low of 1.08 percent or 204.95 points to end at 18,764.50 points level.

Of 333 active scrips, 96 moved up, 218 retreated, and 19 remained unchanged. The ready market volumes stood at 92.773 million shares, compared with the turnover of 122.244 billion shares in the previous session.

Adil Ghaffar, CEO of First Equity Modaraba, said trade remained lethargic throughout the session and investors preferred to remain on the sidelines, whereas extremely thin volumes discouraged any big investment commitment.

Hammad Kehar, Managing Director Axis Global, said Pakistan, as per its political manifesto to bring transparency, had implemented the recommendations of IMF's Enhanced General Data Dissemination System (e-GDDS) and now Pakistan would publish its critical data through National Summary Data Page (NSDP).

“Publication of essential macroeconomic data through NSDP will provide easy access to information critical for monitoring economic conditions and policies,” Kehar said. He further said it would also help the IMF and other multilateral institutions to get an overview on major financial indicators of Pakistan, while reviewing any package for Pakistan.

Despite a positive development that the four companies -two foreign and two locals- are working on an exploration well at offshore block, failed to entice local exploration companies.

A depressing trend in the global crude oil market forced the companies to shed weight and as a result Oil and Gas Development Company slid by Rs1.32 and PPL by Rs2.97 per share.

Pharmaceutical sector was under cloud as the recent price increase, in the range of 9 to 15 percent, has been challenged in the superior court.

The drugmakers’ share prices declined in the range of Rs1.92 to Rs29 per share.

The highest gainers were Abbott Laboratories, up Rs17.42 to close at Rs658.89/share, and J.D.W. Sugar, up Rs10.33 to finish at Rs295.18/share.

Companies that booked highest losses were Mari Petroleum, down Rs29.59 close at Rs1306.63/share, and Wyeth Pakistan Limited down Rs29.01 to close at Rs1030.00/share.

Pakistan International Bulk recorded the highest volumes with a turnover of 4.320 million shares. The scrip gained Rs0.18 to close at Rs11.30/share.

The lowest volumes were witnessed in K-Electric Limited recording a turnover of 13.222 billion shares, and losing Rs0.07 to end at Rs6.29/share.