Stocks fall on security fears, roll over week

Stocks dipped almost one percent in a choppy trade on Monday after the latest round of poor earnings reports, while the regulator’s warning of ‘stringent compliance’ also jittered investors, dealers said.

They added that security worries, Panama court hearing and future roll-over week have also forced the bourse into an oversold territory.

The Pakistan Stock Exchange’s benchmark KSE 100-share index shed 0.90 percent or 446.59 points to close at 48,929.12 points. KSE 30-share Index fell 1.04 percent or 278.65 points to end at 26,416.92 points.

As many as 433 scrips were active; of which 120 increased, 300 decreased and 13 remained unchanged.

Volumes fell 7.8 percent to 344 million shares, while value declined 27.5 percent to Rs14.7 billion.

“Beginning of futures’ rollover week didn’t prove to be a good omen for the market, as outstanding positions in February's future contract had a toll on the index,” said analyst Zeeshan Afzal at Insight Securities.

Future's accounted for almost 33 percent of the traded value.

“Activity in the regular market dropped significantly while overall traded value didn’t reflect the true picture as futures made up the lost volumes to some extent,” Afzal said. “Security issues and Panama hearings remained another factors for the trouble, leading the PSX to close below 49k levels.”

Topline Securities in it post market report said the SECP stringent compliance measures and future roll over week also added to the downside in the index.

Hub Power Company (HUBC) announced an earning per share of Rs2.25 along with a cash dividend of Rs1.5/share, which was in line with the market expectations. NML announced earning per share of Rs8.84, which was below expectations. The stock price declined by 1.9 percent.

Other index names came under heavy beating included; DAWH (down 4.8 percent), ENGRO (down 2.1 percent) HUBC (down 1.9 percent), NML (down 4.2 percent) and ISL (down 5 percent). They cumulatively contributed 173 points to the fall in index.

Companies, reflecting highest gains, included Bata (Pakistan), which was up Rs150 to end at Rs4,100/share and Millat Tractors that rose 55.27 to close at Rs1,160.68/share. Companies, reflecting highest losses, included Wyeth Pak Ltd which was down Rs73.40 to close at Rs4,147.83/share and Sapphire Fiber that fell down Rs52 to end at Rs1,040/share.  

Highest volumes were witnessed in Power Cement Ltd with a turnover of 26.232 million shares. The scrip shed Rs1.51 to close at Rs21.69/share Sui South Gas was second with a turnover of 21.353 million shares. It gained Rs1.04 to end at Rs41.93/share. K-Electric Ltd was third with a turnover of 17.921 million shares. It shed 27 paisas to finish at Rs9.78/share.