Pakistan stocks fall; investors book profits

Shares market on Monday lost nearly half a percent as investors shed risky assets, taking cue from falling global equities and commodity prices, dealers said.

Ali Raza, an analyst at Elixir Securities said equities struggled to hold on to gains and closed lower as selling in the select index heavy names pulled the benchmark in red.  “Turnover on KSE 100 index witnessed a decline of 13 percent relative to this month’s average as institutional investors preferred to remain on the sidelines amid political noise and foreign selling,” he said.

The Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index closed down 0.44 percent or 181.59 points at 41,282.72 points. The highest index of the day remained at 41,604.73 points, while the lowest level of the day was recorded at 41,256.36 points. KSE 30-share Index also dropped 0.6 percent or 136.49 points to close at 22,504.14.

Turnover slid 29 million shares to 378.69 million shares as against 407.60 million shares. Trading value decreased to Rs12.87 billion from Rs14.84 billion. Market capital fell to Rs8.42 trillion from Rs8.45 trillion. Out of 454 companies, 162 closed down, 276 ended up and 16 remained unchanged.

After a positive open, the wider market traded volatile and then succumbed to selling pressure as investors wary of market direction grabbed opportunity to offload their positions in the risky bets. 

On the main-board, financial, cement and exploration and production scrips dented sentiments with Lucky Cement down 2.0 percent and Oil and Gas Development Company falling 1.6 percent. They caused the most damage to benchmark.

“We advise caution particularly for second- and third-tier names as politics and economic headwinds top news headlines,” Raza said. Ahsan Mehanti, an analyst at Arif Habib Corp said stocks closed bearish amid institutional profit-taking in oil, banking and fertiliser sectors.

Oil and marketing companies outperformed others on upbeat September oil sales.  “Pressure in global crude prices, weak local fertiliser prices, dismal car sales and falling global equities played a catalyst role in bearish close at the PSX,” said Mehanti.

Highest increase was recorded in Rafhan Maize. Its share value rose Rs198 to Rs7,998/share, followed by Philip Morris Pak that was up Rs86.75 to Rs1,867.09/share. Major decrease was recorded in Bata (Pak). Its stock value fell Rs101 to Rs4,200/share, followed by Hinopak Motor that was down Rs78.12 to Rs1,529.88/share.

Significant turnover was recorded in stocks of Bank of Punjab, TPL Trakker Ltd, TRG Pak Ltd, Pakistan International Airlines (A), Nimir Resins, Silk Bank Ltd, Sui Northern Gas Pipelines Limited, DS Ind Ltd, Dewan Motors and Pak Int Bulk.

Bank of Punjab remained the volume leader with 49.09 million shares with a decline of 97 paisas to Rs16.01/share. It was followed by TPL Trakker Ltd with 20.38 million shares with an increase of 99 paisas to Rs16.48/share. Turnover in the future contracts rose to 61.40 million shares from 49.11 million shares traded in the previous session.