Stocks closed lower on Thursday as equities continued to extend losses after disqualification of foreign minister Khawaja Asif, likely imposition of federal excise duty (FED) on cement, and poor corporate results, dealers said.
Nauman Khan, head of research at Foundation Securities, said volumes were suppressed and once again remained in 2nd and 3rd tier stocks with Unity Foods topping the leader chart. Khawaja Asif’s disqualification added further to the political mayhem and thus, depressed investor’s sentiment.
“Despite early attempts of making a comeback, market succumbed to selling pressure,” he said, and added that the investors opted to remain on the sidelines ahead of the FY19 budget due on Friday.
Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index shed 0.56 percent or 257.47 points to close at 45,460.87 points.
KSE-30 shares index shed 0.57 percent or 127.65 points to close at 22,381.56 points. As many as 393 scrips were active of which 147 advanced and 228 declined, whereas 18 remained unchanged.
The ready market volumes stood at 170.307 million shares as compared with the turnover of 180.707 million shares a day earlier.
Analyst Ahsan Mehanti at Arif Habib Corporation said market closed in red amid thin activity on pre-budget uncertainty, as well as likely surge in FED on cements and fall in PSDP allocations.
“Surging current account deficit data for July-March 2018, fiscal deficit over 5.8 percent and concerns for rupee stability played a catalytic role in the bearish close,” he added.
In dollar terms, the traded value was down 18.65 percent at $42.81 million, $9.82 million lower than the last trading session, analysts said.
Highlight of the day was the result of Bank of Punjab (BOP) which traded at the upper circuit.
Lucky Cement revealed its plan to enhance production capacity of its Pezu plant by 2.6 million tons per annum (mtpa) at estimated cost of Rs18 billion, and a green field clinker production facility in Iraq of 1.2mtpa at a cost of $109 million, which resulted in the scrip gaining 0.5 percent.
Companies with the highest gains included Unilever Foods, up Rs200.00 to close at Rs9,200.00/share, and Island Textile, up Rs44.88 to close at Rs942.63/share.
Companies with the most losses were Colgate Palmolive, down Rs163.02 to close at Rs3,117.00/share, and Bata Pakistan, down Rs125.61 to Rs2,386.77/share.
Highest volumes were witnessed in BOP with a turnover of 9.372 million shares.
The scrip gained Re1 to close at Rs10.59/share. It was followed by Nimir Resins with a turnover of 8.076 million shares. Its scrip gained 29 paisas to close at Rs12.33/share.
Lowest volumes were witnessed in Unity Foods Ltd with a turnover of 9.98 million shares. Its scrip fell Rs1.34 to close at Rs31.71/share.