Stocks end lower on security concerns

Stocks market witnessed volatile activity on Tuesday amid security concerns while investors focused on second- and third-tier shares, dealers said.

Analyst Ali Raza at Elixir Securities said equities closed marginally lower after the benchmark 100-share Index struggled to find a clear direction and traded volatile amid selective interest. 

“Market opened sideways and traded mixed throughout as participants primarily institutional investors continued to remain cautious and traded selectively in index names,” Raza said.  

The Pakistan Stock Exchange’s (PSX) benchmark 100-share Index closed lower 0.08 percent or 31.23 points to 39,991.79 points. The highest index of the day remained at 40,084.11 points, while the lowest level of the day was recorded at 39,943.49 points.

KSE-30 Index fell 0.04 percent or 9.25 points to 22,811.47 points.

Turnover increased 35 million shares to 424.30 million shares. Trading value rose to Rs13.25 billion as against Rs12.42 billion. Market capital decreased to Rs8.03 trillion from Rs8.04 trillion. Out of 441 companies’ active in the session, 192 recorded in green, 231 in red while 18 remained unchanged.

K-Electric (up 1.3 percent) attracted interest and churned volumes of nearly 70 million shares as intentions by Shanghai Electric Power Company to acquire 66.40 percent stake in the company were made public.

“We expect volatile market as the benchmark index consolidates near the current levels, while institutional flows will continue to guide market direction,” Raza said.

On the other hand, small and mid cap plays remained on retail investors’ radar and dominated volumes chart with many stocks seeing sharp gains. The index traded in a very narrow range of 120 points for most part of the session, however selling in the last 30 minutes of trading pulled Index below 40,000.

Analyst Ahsan Mehanti at Arif Habib Limited said stocks closed lower amid concerns for prevailing political uncertainty and consolidation post major earning announcements.

Trade remained high in second and third tier stocks amid speculations on likely K-Electric divestment deal and corporate revival of Dewan Group companies.

“Pressure in global crude prices, lower fertiliser prices and circular debt concerns in the energy sector played a catalyst role in bearish close,” Mehanti said.

Highest increase was recorded in shares of Murree Brewery, which rose by Rs55.03 to Rs1,155.76/share, followed by Service Ind. Ltd that increased by Rs52.01 to Rs1,092.33/share. Major decline was noted in shares of Ferozsons (Lab), which fell by Rs49.82 to Rs946.73/share, followed by Indus Dyeing that decreased by Rs25.50 to Rs484.50/share.

Significant turnover was recorded in stocks of K-Electric Ltd, Byco Petroleum, Dewan Cement, Dewan Salman, TRG Pak Ltd, Dewan Motors, Sui Northern Gas Pipelines Ltd, Aisha Steel Mill, Nishat (Chunian) and Pace (Pak) Ltd.

K-Electric Ltd remained the volume leader with 69.89 million shares with an increase of 12 paisas to Rs9.21/share. It was followed by Byco Petroleum with 32.54 million shares with an increase of 57 paisas to Rs25.31/share.

Shares’ turnover in the future contracts increased to 39.97 million shares from 35.50 million shares traded in the previous session.