Stocks on Tuesday lost over one percent to profit-taking as there were no strong stimuli out there to give trade a direction in a market that’s reeling under the pressures the country’s economy is facing on nearly every front, dealers said.
Analyst Ahsan Mehanti from Arif Habib Corporations said profit taking witnessed on investors’ concerns over weak economic outlook.
“Dismal home remittances data for November 2018, reports of World Bank cancellation of $250 million emergency relief loan, weak export numbers for last month, and falling global crude oil prices led to a bearish close,” Mehanti added.
Pakistan Stock Exchange’s (PSX) benchmark KSE-100 shares index lost 1.14 percent or 447.67 points to close at 38,851.96 points level. KSE-30 shares index slid 1.53 percent or 287.37 points to end at 18,512.82 points level.
Of 343 active scrips, 80 moved up, 231 retreated, and 32 remained unchanged. The ready market volumes stood at 124.011 billion shares, as compared with the turnover of 154.173 billion shares in the previous session.
Adil Ghaffar, CEO of First Equity Modaraba, said reports that World Bank has cancelled a $250 million emergency relief loan to Pakistan hampered Monday’s positivity. “Furthermore, arrest of political leader also played negatively and benchmark index, being fragile at this point in time, could not sustain and closed in negative zone,” Ghaffar said.
He added that it was not a surprise move as it went without saying that both IMF and World Bank work in complete coordination and take dictation from the US government, through their treasury department.
The observers sensed political developments and before the announcement of Pakistan Muslim League-Nawaz (PML-N) leader Khwaja Saad Rafique’s arrest, the market came under heavy selling pressure.
Another analyst said positive outcome of Sunday’s meeting with the Prime Minister Imran Khan with the delegation of the stock brokers vanished today. The hue and cry in the political horizon and continuous protests in the city against the anti encroachment and illegal construction drive sent negative vibes to local investors. On the other hand, from January 2018 to date, selling from overseas financial institutions has crossed $500 million.
Decline in crude oil price also make dents in the price tags of local oil and gas exploration companies where Oil and Gas Development Company went down by Rs1.66, Pakistan State Oil by Rs4.83, Pakistan Petroleum by Rs2.34 and Pakistan Oilfields by Rs7.70, while other companies also witnessed depression.
The Supreme Court today retracted its earlier decision to ban the construction of buildings with more than six stories in Karachi, and ordered that new high rises can be erected in accordance with the law. This directed investors’ interests to steel stocks.
The highest gainers were Rafhan Maize, up Rs39.99 to close at Rs6800.00/share, and Sazgar Eng, up Rs10.84 to finish at Rs247.65/share.
Companies that booked highest losses were Services Industries Limited, down Rs25.00 to close at Rs725.00/share, and Mari Petroleum, down Rs24.09 to close at Rs1340.23/share.
Amreli Steels Limited recorded the highest volumes with a turnover of 8.573 million shares. The scrip gained Rs1.39 to close at Rs52.37/share. The lowest volumes were witnessed in Pakistan Elektron, recording a turnover of 9.152 million shares, and losing Rs0.06 to end at Rs25.00/share.