Stocks extend losses on weak regional markets

Stocks on Friday extended losses despite gains in some blue-chips as investors remained on the sidelines, taking cues from weak regional markets, dealers said.

Analyst Ahsan Mehanti at Arif Habib Limited said stocks closed bearish after global equities sell-off on geopolitical uncertainty. “Auto, cement and pharmaceutical stocks gained on surging sales data in March,” Mehanti said. “However, concerns over outcome of Panamagate case and uncertainty over Pakistan-India relations led the market in the red.”

The KSE-100 share index of Pakistan Stock Exchange shed 0.78 percent or 373.52 points to close at 47,577.06 points.

KSE 30-share Index fell 0.97 percent or 248.08 points to end at 25,211.91 points. As many as 375 scrip were active; of which 117 increased, 244 decreased and 14 remained unchanged. The ready market volumes stood at 125.767 million as compared to 233.386 million shares a day earlier.

Analyst Nabeel Haroon at JS Global said the market continued its previous day momentum. “Limited participation was witnessed in the market as sceptical investors preferred to remain on the sidelines on the last trading day of the week owing to ongoing political uncertainty.”

Banking sector led the decline as the sector lost value to close 0.7 percent lower. United Bank down 1.47 percent and MCB falling 0.51 percent were the major index movers.

Sui Southern Gas Company extended its previous day gains to close 2.75 percent higher than its previous close. Major contribution to the decline in the index came from Oil and Gas Development Company (OGDC), down 2.42 percent, Hub Power Company (Hubco), decreasing 1.37 percent and Fauji Fertilizer Company (FFC), falling 1.79 percent.

Moving forward, analysts see range-bound trading in near term with institutional flows, guiding the market direction, while concerns on domestic politics are likely to constrain the earnings-related excitement until the court announces Panama verdict.

Companies, reflecting highest gains, included Indus Dyeing up Rs33 to end at Rs703/share and Colgate Palmolive rising Rs25 to close at Rs2,095/share.

Companies, with highest losses, included Wyeth Pakistan down Rs114.95 to close at Rs2,482.04/share and Pakistan Tobacco falling Rs70 to end at Rs1,330/share.

Highest volumes were witnessed in Sui Southern Gas with a turnover of 11.702 million shares.

The scrip gained Rs1.13 to end at Rs42.19/share.

Aisha Steel Mill was the second with a turnover of 7.875 million shares.

It shed 25 paisas to close at Rs24.15/share.

K-Electric was the third with a turnover of 6.105 million shares. It fell nine paisas to finish at Rs7.99/share.