Stocks fall again, led by energy, financial shares

Stocks fell on Wednesday in a volatile trade, weighed down by losses among energy and financial shares ahead of rollover week, dealers said.

The benchmark KSE-100 shares index failed to sustain above 50,000 levels, despite repeated attempts. Ahsan Mehanti, Arif Habib Corporation said institutions booked profits amid concerns on foreign outflows and weak global crude prices.

“Uncertainty over central bank’s policy rate decision on January 28th invited pressure in the banking sector. Concerns over outcome of Supreme court hearings on Panamagate case played a catalytic role in bearish close in the earning season.” 

The Pakistan Stock Exchange benchmark index shed 0.42 percent or 212.15 points to close at 49,756.77 points. KSE-30 shares index shed 0.43 percent or 114.62 points to end at 26,655.42 points. As many as 425 scrips were active of which 185 advanced, 230 declined and 10 remained unchanged.

The ready market volumes stood at 459.446 million as compared to 509.514 million shares a day earlier. Abrar Juma at Global Research said local bourse witnessed a volatile session as index started on a bullish note to touch an all time high level of 50,267 points with major support from Bank Al-Falah (BAFL), Habib Bank (HBL) and International Steel (ISL).

“However, soon after index succumbed to selling pressure as it failed to break through 50,200 points and closed with a negative change of 212 points”.

ISL and its parent company International Industries Limited (INIL) closed at their upper circuit as the former announced intentions to increase capacity while the latter got additional support by posting better than consensus earnings estimates accompanied with dividend of Rs2.50/share.

TRG Pakistan up 4.90 percent also closed at the upper circuit as news of affinity considering an IPO as early as 2017 surfaced the market.

Going forward, analysts expect the market to keep testing the 50k level as the effect of rollover week carries over. Companies reflecting highest gains include Rafhan Maize up by Rs150 to end at Rs8150/share and Sanofi Aventis up Rs34.5 to end at Rs2634.5/share.

Companies reflecting highest losses include Nestle Pakistan down Rs99.01 to Rs8902/share and Pakistan Tobacco down Rs64.14 to end at Rs1218.66/share.

Highest volumes were witnessed in Japan Power with a turnover of 48.117 million shares. The scrip gained 92 paisas to close at Rs8.01/share. Dost Steels Mills was second with a turnover of 34.02 million shares. It gained 49 paisas to end at Rs14.04/share. TRG Pakistan was third with a turnover of 27.956 million shares. It gained Rs2.48 to finish at Rs53.12/share.