Stocks continue downward ride on profit-taking

Pakistan’s equities onWednesday closed  lower on profit-taking in the overbought  market ahead of the federal budget announcement,  dealers said.  Analyst Ahsan Mehanti at Arif Habib  Limited said across-the-board profit-taking  was witnessed at the local bourse. “Prebudget  uncertainty, foreign outflows  played a catalytic role in bearish close.”  The KSE 100-share Index of the Pakistan  Stock Exchange lost 0.58 percent or  301.78 points to close at 51,511.41 points.  KSE 30-share Index shed 0.54 percent or  149.65 points to end at 27,376.77 points. As  many as 396 shares were active; of which  186 increased, 186 decreased and 24 remained  unchanged.  The ready market volumes stood at  371.801 million shares as compared to the  turnover of 377.707 million shares a day  earlier.  Analyst ArhamGhous at JS Global Capital  said KSE-100 index started on a positive  note as the index made an intraday  high of 135-point but soon it lost ground on  evident profit-taking.  “Banking sector led the decline in the  market as the index heavyweights MCB  Bank, down 3.47 percent, and Habib Bank  Limited, falling 0.90 percent, cumulatively  contributed 104 points to the index decline,”  Ghous said.  National Refinery lost 1.09 percent to its  values after the Supreme Court ordered refinery  to pay Rs305 million to the State  Bank of Pakistan for failing to pay its dues  to Saudi Aramco on time.  Al Ghazi Tractor closed 4.54 percent  higher compared with the previous day.  The company strengthened its business  ties with CNH Industrial Italia for the next  10 years andwould assemble and sell ‘New  Holland’ CNHI tractors in Pakistan.  Decline in exploration and production  sector could be attributed to fall in global  crude oil prices to $48.82/bbl. Pakistan Oilfields,  down 0.88 percent, and Oil and Gas  Development, dropping 0.02 percent, were  the major laggards of the sector.  Moving forward, analysts expect a  bullish momentum in the market and recommend  investors to accumulate stocks,  included in the Morgan Stanley Capital International  (MSCI) Emerging Markets  Index on dips.  Index provider MSCI reclassified Pakistan  as an emerging market from frontier  market status and added six securities in  its main board and 27 shares in small-cap  index.  Companies, reflecting highest gains, included  Unilever Foods, up Rs50 to close at  Rs6,200/share and Al-Ghazi Tractors, rising  Rs28.88 to end at Rs665.15/share.  Companies, with most losses, included  Nestle Pakistan, down Rs150 to end at  Rs9,650/share and Pak Suzuki, falling  Rs29.97 to close at Rs840.03/share.  Highest volumes were witnessed in  Worldcall Telecom with a turnover of  38.902 million shares. The scrip gained 27  paisas to close at Rs3.20/share. Dost Steels  was the second with a turnover of 25.434  million shares. It shed 15 paisas to end at  Rs14.82/share. Lotte Chemical was the  third with a turnover of 20.855 million  shares. It edged up 39 paisas to finish at  Rs11.92/share.    ‘Banking sector led  the decline with  MCB Bank down  3.47 percent and  Habib Bank Limited  falling 0.90 percent  cumulatively  contributed  104 points to  the index fall  —Arham Ghou’