Stocks slip as energy shares, oil prices drop

Stocks closed lower on Friday led by the energy sector as oil prices while investors remained lackluster on reduction in margin eligible securities, dealers said. They said increase in haircut and value at risk (VaR) margins, along with the reduction in margin eligible securities as collateral also weighed on investor sentiment.

Ahsan Mehanti at Arif Habib Limited said stocks closed lower on institutional profit-taking in oil, autos and pharmaceutical scrips in the post earning season.  “Investor worries over fall in global crude prices, rising circular debt in the energy sector and outcome of ongoing regulatory oversight on non-compliant brokers invited pressure amid consolidation.”

The Pakistan stocks exchange (PSX) benchmark KSE-100 shares index shed 0.41 percent or 200.69 points to close at 49,191.75 points. KSE-30 shares index shed 0.54 percent or 143.14 points to end at 26,605.02 points. As many as 380 scrips were active of which 121 advanced, 245 declined and 14 remained unchanged.

The ready market volumes stood at 182.738 million as compared to 220.426 million shares a day earlier.  Dealers said lackluster activity prevailed in the market for most part of the day as volumes stood low while dismal data on local petroleum consumption also exerted pressure on index heavy E&P scrips.

Ali Raza at Elixir Securities said the market opened lower with index heavy oils opening gap down and denting benchmark Index in early trade as investors track overnight losses in global crude.

Oil & Gas Development Company (OGDC) shed 2.2 percent, Mari Petroleum was down 1.48 percent, Pakistan Oilfields (POL) lost 0.82 percent and Pakistan Petroleum (PPL) closed 1.62 percent down.

Oil Marketing Companies (OMCs) also remained under pressure as Pakistan State Oil (PSO) shed 1.08 percent and Attock Petroleum closed 0.5 percent down.  

Unless institutional activity picks up strongly in the coming days, analysts continue to see a range-bound market with participants awaiting clarity on two key fronts namely Panama case verdict and progress on new margin-based leverage system.

Companies reflecting highest gains include Unilever Foods up by Rs273.68 to end at Rs5747.36/share and Rafhan Maize up Rs50 to end at Rs7800/share.

Companies reflecting highest losses include Wyeth Pakistan down Rs132.68 to Rs2521.03/share and Khyber Tobacco down Rs33.70 to end at Rs1000/share.

Highest volumes were witnessed in TPL Trakker Limited with a turnover of 11.739 million shares. The scrip gained one paisa to close at Rs15.41/share. Bank of Punjab was second with a turnover of 11.53 million shares. It shed 26 paisas to end at Rs15.43/share. K-Electric was third with a turnover of 10.169 million shares. It shed 15 paisas to finish at Rs9.51/share.