Stocks down in absence of triggers; oil, banking weigh

Stocks on Monday closed lower in absence of major triggers, while investors shed risky assets after fall in international oil prices, dealers said.

Analyst Ahsan Mehanti at Arif Habib Limited said stocks closed lower on pressure in oil, banking and cement stocks after major fall in global equities.Mehanti said weak global crude prices, reports on surging circular debt, falling exports and unchanged interest rate dampened the sentiments.

The KSE 100-share Index of Pakistan Stock Exchange shed 0.59 percent or 290.89 points to close at 48,680.16 points. KSE 30-share Index fell 0.70 percent or 183.52 points to end at 25,989.98 points. As many as 389 scrips were active; of which 118 increased, 252 decreased and 19 remained unchanged. The ready market volumes stood at 237.97 million as compared to 353.39 million shares a day earlier.

Analyst Faisal Bilwani at Elixir Securities said equities closed first day of the week lower with investors awaiting clarity on domestic politics.“Stocks opened slightly positive, but later turned in the red as sellers found little interest on the board as investors stayed on the sidelines after weekend media reports speculating that the much-awaited verdict announcement of the Panama case was only days away,” Bilwani said.

With institutions, including foreigners mostly showing no interest, retail investors led the activity with small-cap plays topping the volumes chart.Exploration and production (E&P) sector lost value to close in the red on the back of international oil prices falling further to $50.48/barrel, pressured by uncertainty over whether an OPEC- (Organisation of Petroleum Exporting Countries) led production cut would be extended beyond June. Pakistan Oilfields, down 1.86 percent, and Pakistan Petroleum, falling 1.32 percent, were the major laggards of the E&P sector.

Overall, negative sentiments were witnessed in the banking sector as the sector’s heavy-weight shares lost value to close lower. MCB, dropping 0.43 percent, and UBL, sliding 0.76 percent, were the major losers of the banking sector. Pak Suzuki, down 1.57 percent, on the back of news that the automobile company might roll back its $460 million investment plan if the government fails to respond to its request for incentives until April 2017.

Analysts said local politics will continue to affect the market in absence of major triggers and with quarterly earnings still a few weeks away.Companies, reflecting highest gains, included Hinopak Motor up Rs51.83 to end at Rs1,650/share and Murree Brewery rising Rs16.12 to close at Rs807/share.

Companies, reflecting highest losses, included Wyeth Pakistan down Rs142.12 to close at Rs2,935.84/share and Unilever Foods falling Rs50 to end at Rs6,050/share.Highest volumes were witnessed in Bank of Punjab with a turnover of 26.599 million shares. The scrip shed 64 paisas to end at Rs17.61/share. Aisha Steel Mill was the second with a turnover of 21.604 million shares. It dropped 24 paisas to close at Rs26.78/share. K-Electric was the third with a turnover of 16.963 million shares. It fell 15 paisas to finish at Rs8.53/share.