Stocks end lower on profit-taking; turnover down 40pc

Stocks on Friday closed down on a continued profit-taking in the blue-chip shares for the second consecutive day, while volumes fell 40 percent due to lack of triggers, dealers said.

Analyst Ahsan Mehanti at Arif Habib Corp said the market closed bearish amid subdued activity on institutional profit-taking in the blue-chip stocks.

Cement shares remained under pressure on higher coal prices despite rising sales data for September. Oil stocks outperformed the index after a surge in US crude prices above $50 a barrel on a likely cut in production.

“Weak fertiliser prices, falling global equities and foreign outflows played a catalyst role in the bearish close,” Mehanti said.

The Pakistan Stock Exchange’s (PSX) benchmark 100-share Index closed down 0.13 percent or 51.69 points to 41,200.48 points. The highest index of the day stood at 41,373.42 points, while the lowest level of the day was recorded at 41,123.54 points. KSE 30-share Index also decreased 69.93 points to 22,663.91 points.

Turnover fell 40 percent or 312 million shares to 462.87 million shares. Trading value shrank to Rs14.30 billion from Rs18.12 billion and the market capital remained flat at Rs8.38 trillion.

Out of 445 companies, 218 closed up, 218 ended down and nine remained unchanged.

A Global Research report said the local bourse got directionless with the KSE 100 hovering between the green and red zone throughout the day.

Total cement off-take increased three percent year on year in September. Higher coal prices (36-month high at $77 per ton) also continued to exert pressure on the sector, causing most cement companies to close negative.

The oil and gas exploration sector managed to benefit from rising oil prices with Brent crude crossing $52.5/ barrel. Consequently, POL (up 0.80 percent) and OGDC (up 0.56 percent) contributed 18 points towards the index. PPL (down 1.12 percent), however, was under pressure due to anticipation of subdued results on account of a potential asset write-down.

The day’s top gainers emerged as HBL (up 1.01 percent) and PSO (up 2.06 percent) with contributions of 29 points and 21 points, respectively.

Highest increase was recorded in Wyeth Pak Ltd. Its share rose Rs139.78 to Rs2,935.43/share, followed by Colgate Palmolive that was up Rs80.75 to Rs1,766/share. Major decrease was registered in Sanofi-Aventis. Its stock value fell Rs55 to Rs1,225/share, followed by Hinopak Motor that was down Rs40.82 to Rs1,556.02/share. Significant turnover was recorded in stocks of Bank of Punjab, Summit Bank, Sui Northern Gas Pipeline Limited, K-Electric, WorldCall Telecom, Pakistan International Airlines (A), Lotte Chemical, Sui Southern Gas Company Limited, Pace (Pak) Ltd and Jahangir Siddiqui Co.

Bank of Punjab remained the volume leader with 47.65 million shares with a drop of 15 paisas to Rs15.55/share. It was followed by Summit Bank with 40.16 million shares with an increase of 45 paisas to Rs4.03/share. Shares’ turnover in the future contracts fell to 45.61 million shares from 65.89 million shares traded in the previous session.