Pakistan stocks fall, tracking regional markets

Stock fell in an active but volatile trade on Tuesday as investors offloaded their weak holdings in line with regional trend, dealers said.

Analyst Ahsan Mehanti at Arif Habib Corp said stocks closed lower amid pressure in global equities on the concerns about outcome of Trump executive orders. “Late session support was witnessed in oil stocks on a likely surge in local petroleum prices,” Mehanti said. “Dismal earnings in fertiliser sector and cautious activity amid regulatory oversight played a catalytic role in bearish close.”

The KSE 100-share Index of the Pakistan Stock Exchange shed 0.44 percent or 214.57 points to close at 48,757.67 points. KSE 30-share Index fell 0.32 percent or 83.21 points to end at 26,302.96 points. As many as 409 scrips were active; of which 139 advanced, 260 declined and 10 remained unchanged.  The ready market volumes stood at 316.857 million as compared to 389.735 million shares a day earlier.

Analyst Faisal Bilwani at Elixir Securities said equities closed lower after trading volatile. “Wider market carried Monday’s negative trend and opened gap down, while lower regional markets also had an impact on sentiments in early trade,” Bilwani said. Though the market quickly recovered thereafter, yet reported institutional selling in the index names across cement, pharmaceutical, financial and exploration and production kept the index under pressure. Investors generally preferred safe havens and yield plays in a bid to strengthen their portfolios to withstand volatility in the near-term.

Notably, OGDC, up 1.9 percent, maintained its winning streak into a second day as government scaled back on its earlier decision of five percent stake divestment, followed by Hub Power, increasing 1.3 percent. HUBCO contributed the second most gains to the index after churning more than five million shares, being most in the past three weeks. Declines were led by Lucky Cements, down two percent, SEARL, decreasing four percent, Habib Bank, inching down percent, MCB Bank, falling 1.4 percent and Mari Petroleum, declining 3.1 percent. Analysts expected the volatility to prevail in the near-term with KSE 100-share Index hovering in a range of 300-600 points near 49,000-point. Flows in the index names would continue to provide direction to the market, while ongoing results season would keep investors interest intact.

Companies, reflecting highest gains, include Pakistan Tobacco, up Rs53.93 to end at Rs1,214.18/share and Millat Tractors, increasing Rs51.76 to end at Rs1,087.08/share. Companies, with highest losses, include Rafhan Maize, down Rs299.97 to Rs7,500.03/share and Wyeth Pakistan, decreasing Rs158.63 to close at Rs4106/share. Highest volumes were witnessed in K-Electric Limited with a turnover of 32.904 million shares. The scrip inched up 15 paisas to close at Rs10.40/share. TRG Pakistan was second with a turnover of 24.027 million shares. It fell 30 paisas to end at Rs54.10/share. Japan Power was third with a turnover of 19.567 million shares. It shed Rs1.0 to finish at Rs6.34/share.