Pakistan stocks extend losses in volatile trade

Pakistan Stock Exchange (PSX) on Tuesday witnessed a highly volatile session with thin volume as declining global crude prices and regulatory oversight pertaining to in-house financing kept the participants from holding positions, dealers said.

Analyst Ahsan Mehanti at Arif Habib Limited said bearish trend continued in the post-earnings season amid slide in global crude prices. “Late support in the oversold banking and cement stocks supported the index to close above the session’s lows,” Mehanti said. “Trade remained thin on concerns over liquidity for second- and third-tier scrips and uncertainty over outcome of the regulatory oversight.”

The KSE 100-share Index of the PSX shed 0.24 percent or 116.66 points to close at 48,539.06 points. KSE 30-share Index fell 0.17 percent or 43.46 points to end at 26,242.45 points. As many as 395 scrips were active; of which 134 increased, 248 decreased and 13 remained unchanged. The ready market volumes stood at 195.127 million as compared to 133.042 million shares a day earlier.

Analyst Faisal Bilwani at Elixir Securities said equities closed marginally negative amid heightened volatility with the benchmark Index trading in a wide range of more than 600 points.

“Market took investors on a roller-coaster ride as the Index first nosedived 1.22 percent followed by recovery in late hours that wiped most of the day’s losses on reported institutional buying,” Bilwani said.

Analysts said stocks carried bearish momentum from Monday and kept sliding during the day as investors traded cautiously in absence of triggers, while sentiments were also dented on another broker’s suspension notice sent near midday. They said the final 90-minute, however, turned the tide with reports of foreign institutional buying and expected progress on leveraged product triggering a rally.

Analysts expect stocks to carry momentum with a relief rally likely pushing Index beyond 49,000-point and investors will again look for clarity on domestic political front and more importantly any whisper or concrete news on the most-talked leverage product.

Companies, reflecting highest gains, included Unilever Foods up Rs215.28 to end at Rs6,250/share and Colgate Palmolive that rose Rs104 to close at Rs2,204/share.

Companies, with highest losses, included Rafhan Maize down Rs188 to close at Rs7,711/share and Wyeth Pakistan that fell Rs119.74 to end at Rs2,275.24/share.

Highest volumes were witnessed in TRG Pakistan with a turnover of 14.39 million shares. It share value inched up 53 paisas to end at Rs53/share. Sui Northern Gas was the second with a turnover of 12.135 million shares. It shed 41 paisas to close at Rs129.71/share. Power Cement Limited was the third with a turnover of 11.939 million shares. It gained 96 paisas to finish at Rs19.28/share.