Pakistan stocks fall on profit-taking; foreign selling

Stocks fell on Monday as profit-taking continued in blue-chips such as energy stocks after a string of records last week, while foreign investors selling also weighed, dealers said

They added that institutional investors opted for profit taking given uncertainty in the global equities amid weakening crude prices. Ahsan Mehanti at Arif Habib Corp said stocks battered on uncertainty in global equities.

“Weak global crude prices invited pressure in oil stocks. Concerns over weak exports and foreign outflows played a catalytic role in bearish close”.

The Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index shed 321.96 points or 0.65 percent to close at 48,888.54 points.

KSE-30 shares index lost 225.54 points or 0.84 percent to end at 26,513.69 points. As many as 419 scrips were active of which 133 advanced, 269 declined and 17 remained unchanged.

The ready market volumes stood at 316.062 million as compared to 514.224 million shares a day earlier.

Faisal Bilwani at Elixir Securities said equities closed lower on selling primarily in index names. “A short positive open was followed by wider market entering in the red zone as institutional profit taking during the day in notable names across financials, oils, cements and industrials pulled KSE-100 Index lower to test support below 49K.”

Fertilisers, however, weathered the general downtrend and traded higher tracking positive news over the weekend that government has restored subsidy on urea.

“Regulatory changes applicable on mutual funds that now require minimum 5.0 percent of assets as cash and agreements with creditors to meet possible redemptions was likely one of the factors that triggered profit taking, however, we would highlight no major material impact as most funds already remain complaint,” Bilwani added.

K-Electric (KEL) up 2.3 percent led volumes with over 22 million shares traded on system and another 20 million off market with stock closing green after Chinese regulators okayed the recent stake purchase in the company.

Going forward, analysts see volatility to increase as institutional flows guide market in absence of triggers while earnings related excitement seems to be overshadowed by flows, primarily foreign funds selling.

Companies reflecting highest gains include Mari Petroleum up by Rs47.69 to end at Rs1455.28/share and Ghandhara Industries up Rs46.55 to end at Rs977.59/share.

Companies reflecting highest losses include Unilever Foods down Rs235 to Rs5750/share and Rafhan maize down Rs230 to end at Rs7810/share.

Highest volumes were witnessed in K-Electric Limited with a turnover of 22.746 million shares. The scrip gained 21 paisas to close at Rs9.46/share.

Sui Southern Gas Company was second with a turnover of 18.177 million shares. It gained 90 paisas to end at Rs38.64/share. Engro Fertilizer was third with a turnover of 16.943 million shares. It gained 80 paisas to finish at Rs70.39/share.