Pakistani shares slide as investors fear gloomy global growth

Pakistan stock fell for the fourth straight session on Friday on fears of slowdown in global growth and other regional markets while falling oil prices also dented sentiments, dealer said.

“Bearish trend continued amid major fall in global equities and slump in crude oil prices," Ahsan Mehanti at Arif Habib Corporation said in a post market note.

The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share index declined 356.38 points, or 1.12 percent, to close at 31,464.16 points. The index shed 1,242.06 points, or 3.79 percent, in the last four sessions. KSE 30-share index declined 225.46 points or 1.21 percent to close at 18,362.60 points. Volumes improved eight percent to 121.68 million shares. Trading value remained steady at Rs7.08 billion. The market capitalisation dropped Rs67 billion to Rs6.65 trillion. Out of the total 337 active stocks, 139 closed down, 75 up, and 23 remained unchanged.

Mehanti said security unrest in Karachi, concerns over foreign outflows, falling exports data and slip in crude prices near to $27/barrel dominated bearish sentiment.

Financial counters led the losses as Habib Bank Limited, MCB Bank and National Bank of Pakistan closed down while blue-chip stocks including Engro Corporation, Pakistan State Oil, Lucky Cmenet, Fauji Cement and Indus Motor Company, came under stress. “Local bourse remained under pressure due to continuous foreign selling coupled with declining regional markets,” said Topline Securities in a comment. “Foreigners were net sellers of $17.3million during the week. Net buying of $3.0 million was seen in cement sector, while banks and energy stocks witnessed net selling of $9.6 million and $6.5 million, respectively.”

Faizan Ahmed at JS Global Research said the market remained volatile throughout the week and failed to sustain its positive momentum gained at the start of the month. Across the board sell-off was incited by persistent fall in global crude oil prices, continued foreign selling and negative news flow in key sectors.

 Dealers said almost all the index heavyweights were looser during the week.  Oil and gas fell 4.8 percent on weekly basis, chemicals declined 3.6 percent, banks shed three percent and cement decreased 4.8 percent on week-on-wee basis.

Selling across the counters was witnessed despite the government asked Oil and Gas Regulatory Authority to treat Rs101 billion financial costs of Sui twins as part of revenue requirement.

Positive news including signing of $16 billion LNG deal between Pakistan and Qatar, end of 15-day long PIA strike, increase in private sector credit and release of encouraging cement sales numbers for the month of January, failed to lure investors, they added.

Fauji Cement was volume leader with eight million shares and it closed at Rs38.50. Jahangir Siddiqui & Company traded 7.76 million shares and closed at Rs21.25. TRG Pakistan also recorded volume of 6.76 million shares and closed at Rs26.