Stocks fall in absence of triggers

Stocks on Monday lost around one percent as investors stayed on the sidelines amid lack of triggers and concerns over regulatory fallout, dealers said.

Analyst Faisal Bilwani at Elixir Securities said equities closed down on the first day of the week due to lacklustre participation. “Stocks carried bearish momentum from Friday (last) and continued to slip on lack of positive triggers, while investors both institutions and retail preferred to stay on the sidelines amid anxiety over domestic politics,” Bilwani said. 

The KSE 100-share Index of Pakistan Stock Exchange shed 0.99 percent or 487.25 points to close at 48,520.75 points.

KSE 30-share Index fell 0.89 percent or 237.37 points to end at 26,354.86 points. As many as 407 scrips were active; of which 65 increased, 325 decreased and 17 remained unchanged. The ready market volumes stood at 250.993 million as compared to 275.386 million shares a day earlier.

Analysts said widening trade deficit and dismal results kept the trade range-bound. Analyst Ahsan Mehanti at Arif Habib Limited said stocks sharply dropped on concerns over the outcome of regulatory action against defaulting brokerage houses.

“Weak sentiments prevailed on renewed concerns over foreign outflows, surging circular debt in energy sector and dismal payouts,” Mehanti said. Volumes in wider market were thin, while small-cap stocks led the trading. Index heavy financials and cements, which declined on reported institutional selling, dented the Index.

Steel makers came under pressure on unconfirmed weekend news of a provincial court granting stay order on anti-dumping duty on Chinese imports. Analysts expected the market to take cue from politics and a regulator’s decision.  

Companies, reflecting highest gains, included Pakistan Tobaco, up Rs58.84 to end at Rs1,235.71/share and Khyber Tobacco that rose Rs47.25 to close at Rs992.35/share. Companies, with highest losses, included Wyeth Pakistan, down Rs198.25 to close at Rs3,766.88/share and Indus Motor Company that fell Rs82.62 to end at Rs1,596.55/share.

Highest volumes were witnessed in Aisha Steel with a turnover of 24.97 million shares. The scrip shed Rs1.25 to close at Rs23.80/share. Lotte Chemical was the second with a turnover of 18.585 million shares. It inched up 47 paisas to end at Rs10.51/share. Bank of Punjab was the third with a turnover of 15.04 million shares. It inched down 64 paisas to finish at Rs14.78/share.