Pakistan stocks fall in low-volume market

Investors backed away from the stock market on Monday, with light volume magnifying moves, as worries about regulatory crackdown and broker defaults pushed shares over one percent lower, dealers said. They added that investors and traders alike took to the sidelines opting for wait and see approach on concerns over pending Supreme Court verdict on Panama leaks case.

Ahsan Mehanti at Arif Habib Limited said stocks fell sharply amid pressure in scrips across the board on profit taking in the post earning season. “Record fall in global crude prices, concerns for rising circular debt in the energy sector and outcome of ongoing regulatory oversight on non-compliant brokers invited pressure amid consolidation,” Mehanti said. “Even the upbeat auto sales numbers failed to support falling prices.”

The Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index shed 1.09 percent or 536.03 points to close at 48,655.72 points. KSE-30 shares index shed 1.2 percent or 319.11 points to end at 26,285.91 points. As many as 397 scrips were active of which 82 advanced, 296 declined and 19 remained unchanged.

The ready market volumes stood at 133.042 million as compared to 182.738 million shares a day earlier. Ali Raza at Elixir Securities said equities tumbled at the start of the week with volumes lowest in almost a year. “Index names saw little interest as institutional participation remained highly selective while retail investors were also cautious in wider market in absence of major triggers.” 

Major dent came from index heavy oils that opened gap down and traded lower throughout with Oil & Gas Development Company Limited (OGDC) down 2.0 percent leading the declines as investors tracked the latest plunge in global crude due to rising US production. UBL down 2.0 percent as anxiety and confusion over Friday's rumor of leadership change remained.

Among leaders, International Steels up 2.7 percent finished strong on weekend news of provincial court denying stay order to commercial importers against recent imposition of anti-dumping duties on Chinese imports. Another highlight was Flying Cements closing at upper price limit on announcement of capacity expansion.

Analysts expect volumes to pick up in days ahead with local interest in MSCI EM names likely lifting sentiments while any clarity on Panama case and planned new leverage product is expected to boost investor’s interest in wider market. Companies reflecting highest gains include Unilever Foods up by Rs287.36 to end at Rs6034.72/share and Rafhan Maize up Rs99 to end at Rs7899/share.

Companies reflecting highest losses include Wyeth Pakistan down Rs126.05 to Rs2394.98/share and Sanofi Aventis down Rs110.30 to end at Rs2095.70/share. Highest volumes were witnessed in Aisha Steel Mill with a turnover of 10.625 million shares.

The scrip gained 74 paisas to close at Rs22.74/share. Pakistan Refinery was second with a turnover of 9.98 million shares. It shed Rs3.14 to end at Rs59.73/share. Dost Steels Limited was third with a turnover of 9.01 million shares. It shed four paisas to finish at Rs14.12/share.