Pakistan stocks down on institutional profit-taking

Pakistan Stock Exchange (PSX) witnessed across-the-board profit-taking; following the quarterly results announcement, as investors opted to square their positions amid depressed global crude prices, dealers said.

Ahsan Mehanti at Arif Habib Limited in an email said the stocks closed sharply lower on institutional profit-taking in the post-earnings season. “Dismal CPI inflation data for April 2017, pre-budget uncertainty, foreign outflows and major fall in global crude prices played a catalytic role in the bearish close at PSX.”  The KSE-100 shares index shed 0.17 percent, or 84.28 points, to close at 48,605.14 points. KSE-30 shares index gained 0.01 percent, or 2.66 points, to end at 25,654.16 points. As many as 369 scrips were active, of which 130 advanced, 222 declined and 17 remained unchanged.

The ready market volumes stood at 260.205 million shares as compared to 198.972 million shares a day ago. Arham Ghous in a report issued by JS Global Capital said that volatile session was witnessed at the local bourse, as the index traded between an intraday high of +240 points and intraday low of -199 points.

“This pressure in the market was on the back of investor skepticism regarding the political scenario in the country.” Major laggards of the index were TRG, down 4.90 percent; International Steel (ISL), down 4.97 percent; and Sui Northern Gas Pipelines Limited (SNGPL), down 1.72 percent, as they cumulatively contributed 61 points to the index decline.

On the flipside, Pakistan Petroleum Limited (PPL), up 1.43 percent; and Oil and Gas Development Company (OGDC), down 0.77 percent were the major leaders of the index, as oil prices rebounded from its near 2017 low and recent data reported a much higher-than-expected fall in the US crude stocks.

Banking sector closed 0.43 percent higher than its previous day close, as UBL up 0.29 percent, MCB up 0.85 percent and Bank Al-Falah (BAFL) up 2.44 percent closed in the green zone. Moving forward, analysts except the market to remain volatile due to political noise in the country and recommend investors to accumulate value stocks at the current market levels.

Companies reflecting highest gains included Colgate Palmolive, up Rs99.67 to end at Rs2,300/share and Rafhan Maize, up Rs97.75 to end at Rs7,112.75/share. Companies reflecting highest losses included Sanofi Aventis, down Rs81.78 to Rs2,290/share and Pakistan Tobacco, down Rs50 to end at Rs1,500/share.

Highest volumes were witnessed in K-Electric with a turnover of 32.12 million shares. The scrip closed flat at Rs8/share. Engro Polymer was second with a turnover of 25.404 million shares. It gained 40 paisas to end at Rs28.92/share. TRG Pakistan was third with a turnover of 24.244 million shares. It sheds Rs2.73 to finish at Rs53.02/share.