Stocks close lower as profit-taking continues

Pakistan stocks closed lower for the second consecutive day on Tuesday as profit-taking continued across the board in the overbought market, dealers said.

Analyst Ahmed Saeed Khan at JS Research said volatility prevailed as the index juggled between +136 and -131 points amid profit-taking.

Pressure was witnessed in the oil sector that remained largely depressed on the back of global oil prices down near 0.5 percent ahead of US weekly stockpile data. NRL (down 1.38 percent) and Byco (dropping 1.54 percent) were the biggest losers.

The Pakistan Stock Exchange’s (PSX) benchmark 100-share Index closed lower 54.51 points, or 0.14 percent, to 38,415.31 points. The highest index of the day remained at 38,604.33 points, while the lowest level of the day was recorded at 38,338.52 points.

KSE 30-share Index also decreased 52.07 points, or 0.24 percent, to 22,085.65 points.

Turnover increased five million shares to 154.53 million shares. Trading value fell to Rs8.25 billion as against Rs9.93 billion and market capital decreased to Rs7.65 trillion from Rs7.66 trillion. Of a total of 325 companies, 114 ended up, 184 closed down while 27 remained unchanged.

Profit taking was seen in the banking sector that remained mostly negative throughout the day despite the news of China easing rules for Pakistan's bank to operate in the country. 

Profit taking continued in the cement sector with all the major stocks ending down. Major laggard was DGKC, which was down 1.14 percent.

Analyst Ahsan Mehanti at Arif Habib Corp said stocks closed lower amid consolidation in the futures rollover week.

Pharma stocks outperformed the index on a likely revision in medicine prices next month. 

“Concerns over soaring trade deficit, ongoing political standoff and burgeoning public debt played a catalyst role in bearish close,” Mehanti said.

A report of Global Research said Dewan Group companies, including Dewan Cement (down 6.44 percent) and Dewan Motors (dropping 6.07 percent), were among the volume leaders. Both the stocks experienced considerable selling pressure over reports of an unsuccessful meeting with bankers for a potential debt re-structuring.

Highest increase was recorded in shares of Unilever Foods by Rs36 to Rs5,249/share followed by Island Textile that rose Rs35.56 to Rs960/share. Major decrease was recorded in shares of Rafhan Maize by Rs85.50 to Rs8,835.24/share followed by Hinopak Motor XD that fell Rs15.47 to Rs981.54/share.

Significant turnover was recorded in stocks of Jahangir Siddiqui Co, K-Electric Ltd, Dewan Cement, Dewan Motors, TRG Pak Ltd, Pak Elektron, Azko Nobel Pak, Sui Northern Gas Company Limited, Engro Fertilizers and Pak Int. Bulk. 

Jahangir Siddiqui Co remained the volume leader with 16.70 million shares with an increase of 69 paisas to Rs20.70/share. It was followed by K-Electric with 16.18 million shares with a drop of seven paisas to Rs7.96/share.

Shares’ turnover in the future contracts increased to 78.78 million shares from 61.84 million shares traded in the previous session.