Stocks slip after deadly terror attack in Quetta

Stocks closed slightly down in a volatile trade on Tuesday after a deadly terrorist attack left more than 60 people dead at a police training center in Quetta, dealers said.

“Another volatile session was seen at the local bourse, following the attack on the police training centre in Quetta and an increase in political uncertainty,” Topline Securities said in a post market report. “Resultantly, the index fell 1.7 percent at the start of the session; however index recovered on institutional led buying.”

The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index fell 0.21 percent or 87.27 points to close at 40,764.76 points. The highest index of the day remained at 40,852.03 points, while the lowest level of the day was recorded at 40,175.27 points. KSE-30 Index fell 0.09 percent or 19.34 points to close at 22,277.86 points.

Turnover increased by 90 million shares to 367.89 million shares, trading value rose to Rs11.58 billion from Rs9.47 billion, while market capital narrowed to Rs8.31 trillion against Rs8.34 trillion. Out of 425 companies’ active in the session, 126 closed in green, 284 in red while 15 remained unchanged.

Dealers said stocks plummeted as participants treaded cautiously after overnight terror attack and more importantly on latest developments regarding Imran Khan's planned protest on reports that cleric Tahir ul  Qadri would join the protest in an attempt to shutdown Islamabad on November 2, 2016. Late support from the cement and banking stocks covered the losses, dealers said.

Nabeel Haroon, analyst at JS Research, said selling pressure was witnessed at the opening and the index fell to an intraday low of 675 points. “Nonetheless, investor came in to buy during the latter hours, as the index recovered to close at 40,765 levels,” he said. “Moving forward we recommend investors to adopt a cautious approach in the market on the back of ongoing political uncertainty.”

PSMC closed on its lower circuit as the automobile assembler posted 56 percent decline in its profits during the first nine months of the current financial year. This decline in earnings is attributed to conclusion of Punjab Government Cab Scheme and appreciation of Yen during the period. 

Highest increase was recorded in shares of Sanofi-Aventis, which rose by Rs68.35 to Rs1,435.45/share, followed by Sapphire Textile that increased by Rs58.58 to Rs1,230.24/share. Major decline was noted in shares of Bata (Pak), which fell by Rs120.53 to Rs4,179.47/share, followed by Pak Tobacco that decreased by Rs49.37 to Rs1,125.63/share.

Significant turnover was recorded in stocks of Bank of Punjab, K-Electric Ltd, Dost Steel (R), Pace (Pak) Ltd, TRG Pak Ltd, WorldCall Telecom, Pakistan International Airlines (A), Engro Polymer, Sui Southern Gas Company Limited and Lotte Chemical.

Bank of Punjab remained the volume leader with 50.25 million shares with an increase of 39 paisas to Rs17.64/share. It was followed by K-Electric Ltd with 27.46 million shares with an increase of seven paisas to Rs9.19/share.

Shares’ turnover in the future contracts increased to 107.05 million shares from 90.20 million shares traded in the previous session.