Security worries hit stocks; PSX falls with blue-chip

Stocks prices slid on Friday as investors shunned risk after deadly terror attack in Sindh that sparked fresh security worries in the country, dealers said.

Analyst Ahsan Mehanti at Arif Habib Limited said stocks closed bearish amid concerns for security unrest in the country after a suicide blast in Sehwan. 

“A weak earnings announcement by OGDC (Oil and Gas Development Company) invited midsession pressure, while weak global stocks and crude prices, concerns over foreign outflows, and dismal payouts in fertilizers and banking sector played a catalytic role in bearish close at PSX (Pakistan Stock Exchange),” Mehanti said.

The benchmark KSE-100 shares Index shed 0.43 percent or 212.59 points to close at 49,375.71 points, while KSE-30 shares index lost 0.6 percent or 161.82 points to end at 26,695.57 points.

Out of as many as 416 active scrips, 225 advanced, 178 went down, and 13 remained unchanged. The ready market volumes stood at 373.303 million as compared to 263.26 million shares a day earlier. 

Ali Raza from Elixir Securities said equities failed to build on previous day’s momentum and closed negative with Engro Corp (ENGRO) closed 4.6 percent down, primarily spoiling the market mood. 

“Although listless activity and sideways trading was witnessed in early hours due to terror attack that kept most investors cautious and at bay, the wider market soon afterwards inched upwards helped by buying interest in MSCI EM stocks and select sideboards, Raza said.  “… that pushed KSE-100 Index higher by 286 points at AM session close.”

But the tide quickly turned right at the outset of second session as investors sentiments were hit hard after Engro Corp declared a significantly lower payout despite its recent stake sale of Engro Foods resulting in stock not only hitting lower price limit but also dragging the market in negative zone. 

Key earnings announcements by OGDC -- down by 1.2 percent- and United Bank (UBL) --down 1.5 percent-- also dented investors sentiment. 

Going forward, analysts continue to see pressure and volatility in the near-term as benchmark index has time and again found strong resistance at 50,000 level. 

Moreover, the new wave of terrorism in the country and ongoing court hearing on Panama allegations is likely to counter excitement in the remaining result season. 

Companies reflecting highest gains include Rafhan Maize, which went up by Rs379 to end at Rs7959/share and Millat Tractors, which gained Rs52.63 to end at Rs1105.41/share. 

Companies reflecting highest losses include Wyeth Pakistan, which shed Rs204.77 to Rs4221.23/share, and Sapphire Textile, which lost Rs67.8 to end at Rs1288.27/share. 

Highest volumes were witnessed in K-Electric Limited with a turnover of 28.402 million shares. The scrip gained 9 paisas to close at Rs9.99/share.

Power Cement was second with a turnover of 25 million shares. It gained Rs1.08 paisas to end at Rs22.83/share. Dost Steels was third with a turnover of 24.27 million shares. It gained 12 paisas to finish at Rs16.06/share.