Pakistan stocks down as profit-taking weighs

Pakistan Stock Exchange (PSX) remained devoid of support on Wednesday despite upbeat oil data as post-results profit accumulation further dragged the benchmark index down, dealers said.    

Analyst Ahsan Mehanti at Arif Habib Limited said PSX witnessed late session profit-taking in the post earning season, which led to a bearish close. “Upbeat data on oil production invited midsession support in exploration and production sector’s stocks,” Mehanti said. Weak global crude prices and concerns over regulatory outcome for non-compliant brokerages kept the participants on the sidelines.

The KSE 100-share Index of Pakistan Stock Exchange (PSX) shed 0.48 percent or 233.23 points to close at 48,305.83 points. KSE 30-share Index shed 0.89 percent or 232.34 points to end at 26,010.11 points. As many as 386 scrips were active; of which 132 increased, 238 decreased and 16 remained unchanged.  The ready market volumes stood at 206.112 million as compared to 195.127 million shares a day earlier.

Analyst Arham Ghous at JS Global said volatility prevailed at the local bourse as the benchmark KSE-100 index traded between an intraday high of 228 points and low of 329 points. Ghous said K-Electric Limited (KEL) was down 4.29 percent and Sui Southern Gas (SSGC) dropped 1.09 percent on reports that Abraaj Group would not be able to conclude KEL deal with Shanghai Electric within the stipulated time due to its failure to settle financial dues with SSGC and the National Transmission and Despatch Company. That entails a request for an extension from Shanghai Electric and Securities and Exchange Commission of Pakistan.

United Bank was down 3.02 percent in the banking sector as investors remained skeptical about the bank because of the market talks on its internal affairs.

Pak Elektron (down 1.53 percent) lost value to close in the red as the company posted earnings per share of Rs7.51 for 2016, which was lower the market expectation.  Fauji Fertilizer (FFC) inched up 0.70 percent on reports that Hubco planned to divest its 40 percent stake in Thar Energy Limited by offering 30 percent to FFC and 10 percent to China Machinery Engineering Company.

Analysts expect volatility to prevail in the market and recommend investors to stay cautious.  Companies, reflecting highest gains, included Wyeth Pakistan up Rs113.76 to end at Rs2,389/share and Phillip Morris Pakistan that rose Rs98.54 to close at Rs2,259.69/share.

Companies, with highest losses, included Unilever Foods down Rs150 to close at Rs6,100/share and Exide Pakistan that fell Rs18.87 to end at Rs818.10/share.

Highest volumes were witnessed in K-Electric with a turnover of 47.638 million shares. The scrip shed 41 paisas to end at Rs9.15/share. Aisha Steel Mills was the second with a turnover of 11.189 million shares. It fell six paisas to close at Rs22.60/share. Power Cement Limited was the third with a turnover of 9.6 million shares. It was down 20 paisas to finish at Rs19.20/share.