Stocks fall as blue-chip shares draw selling

Stocks fell on Tuesday as investors sold market heavyweight energy stocks and other blue chips amid worries over foreign outflows and lower global crude prices, dealers said.

They added that start of roll-over week and expected Panama case decision by the Supreme Court continued to weigh on the market. “The bourse witnessed another lackluster session. Faltering sentiments due to Panama case’s looming verdict and deliverable future’s roll-over period led the index to decline by 157pts,” said analyst Fahad Qasim at Topline Securities.

Ahsan Mehanti at Arif Habib Limited said bearish trend continued on concerns over foreign outflows, uncertainty in global equities and lower global crude prices. “Investors awaited outcome of IMF talks, focusing on privatization and energy sector reforms amid surging circular debt,” Mehanti said. “Consolidation in the post earning season played a catalytic role in bearish close.”

The Pakistan Stock Exchange benchmark KSE-100 shares index shed 0.32 percent or 156.75 points to close at 48,523.41 points. KSE-30 shares index shed 0.51 points or 132.88 points to end at 25,857.10 points. As many as 391 scrips were active of which 153 advanced, 214 declined and 24 remained unchanged.

The ready market volumes stood at 218.176 million as compared to 237.97 million shares a day earlier. Arham Ghous at JS Global said local bourse closed in red on the back of forthcoming Panama case result next week. “The index traded between an intraday high of +5 points and intraday low of -190 points, finally closing at 48,523 points.”

Pakistan Petroleum (down 1.36 percent), Pakistan Oilfields (down 1.33 percent) and Oil & Gas Development Company (down 0.85 percent) kept the E&P sector in red zone as oil prices struggled near low levels on rising US shale production. Moreover, mixed insight in the cement sector was witnessed, where D G Khan Cement (DGKC) down 0.38 percent and Maple Leaf Cement (MLCF) down 0.32 percent, closed negative on the back of the KPK government awarding 14 licenses to the country's various industrial groups to set up cement factories in the province.

Banking sector was down 0.6 percent as the sector's heavy weights, MCB (down 0.15 percent) and Habib Bank (down 0.52 percent) closed in negative again. Moving forward, analysts expect market to remain volatile due to the rollover week and Panama case jitters.

Companies reflecting highest gains include Phillip Morris Pakistan up by Rs117.80 to end at Rs2473.80/share and Pakistan Tobacco up Rs66.50 to end at Rs1396.50/share.

Companies reflecting highest losses include Wyeth Pakistan down Rs145.98 to Rs2789.86/share and Colgate Palmolive down Rs85 to end at Rs2165/share.

Highest volumes were witnessed in Bank of Punjab with a turnover of 23.189 million shares. The scrip shed 91 paisas to close at Rs16.70/share. Azgard Nine was second with a turnover of 19.056 million shares. It gained Rs1.0 to end at Rs12.74/share. Aisha Steel Mill was third with a turnover of 18.69 million shares. It shed Rs1.10 to finish at Rs25.68/share.