PSX ends down on profit-taking in energy, financial shares

Stocks closed down on Tuesday as the rate cut promoted selling in banking sector and soft oil bit energy shares, while futures rollover also trimmed gains, dealers said.

The Global Research report said the local bourse opened on an optimistic note, inching up 72 points soon after the opening bell. 

“However, the index lost its momentum and succumbed to selling from the index heavyweight commercial banks owing to SBP’s (State Bank of Pakistan) monetary easing stance, eroding 50 points from the index,” the report said.

The Pakistan Stock Exchange’s (PSX) benchmark 100-share Index closed lower 141.00 points, or 0.38 percent, to 36,582.35 points. The highest index of the day remained at 36,723.35 points, while the lowest level of the day was recorded at 36,553.15 points.

KSE 30-share Index decreased 138.11 points, or 0.65 percent, to 21,224.47 points.

Turnover increased 33 million shares to 298.41 million shares. Trading value rose to Rs11.43 billion from Rs10.70 billion and market capital fell to Rs7.44 trillion as against Rs7.47 trillion. Of a total of 385 companies, 156 closed up, 199 ended down and 30 remained unchanged.

“We expect the market to remain under pressure due to rollover week for future contacts,” said the Global Research report.

The exploration and production sector also emerged as the major laggard, hammering the index by 58 points fueled by declining international oil prices (U.S. crude down 0.35 percent and Brent dropping 0.54 percent) because of Iran’s denial of freezing output.  HUBC (down 2.46 percent) and KAPCO (decreasing 1.33 percent) took away 50 points. 

Analyst Ahsan Mehanti at Arif Habib Corp said stocks closed bearish amid higher trades on consolidation in the post earning season.

Activity was led by second- and third-tier scrips ahead of the budget for the next fiscal year of 2016/17. 

“Foreign outflows, political uncertainty and dismal trade deficits and exports played a catalyst role in bearish close,” Mehanti said.

Highest increase was recorded in Gandhara Industries. Its share value rose Rs16.37 to Rs343.85/share, followed by Tandlianwala Sugar that increased Rs13 to Rs274/share. Major decline was noted in Nestle Pak XD. Its share price fell Rs100 to Rs7,000/share, followed by Philip Morris Pak that decreased Rs63.75 to Rs1,595/share.

Significant turnover was recorded in stocks of K-Electric Ltd, Lotte Chemical, Sui Northern Gas Pipeline Limited, TRG Pak Ltd, Byco Petroleum, Jahangir Siddiqui Co, Pace (Pak) Ltd, Pak Int Bulk, Bank of Punjab and Dewan Motors.

K-Electric Ltd remained the volume leader with 65.33 million shares with an increase of 24 paisas to Rs8.17/share. It was followed by Lotte Chemical with 20.89 million shares with an increase of 30 paisas to Rs6.72/share.

Shares’ turnover in the future contracts increased to 87.45 million shares from 86.48 million shares traded in the previous session.