Stocks continue losing streak on profit-taking

Stocks fell on Friday for the fourth straight session as investors preferred to square their positions ahead of the federal budget announcement expected next week, dealers said.  

Analyst Ahsan Mehanti at Arif Habib Limited said bearish close was witnessed amid concerns over a record current account deficit and a likely status quo in the State Bank of Pakistan’s policy rate announcement on Saturday (today).

“Oil stocks outperformed amid surging global crude prices,” Mehanti said. “However, pre-budget uncertainty, foreign outflows and concerns over falling foreign exchange reserves on external payments played a catalytic role in bearish close.”

The KSE 100-share Index of Pakistan Stock Exchange lost 0.42 percent or 214.57 points to close at 50,742.03 points.

KSE 30-share Index shed 0.51 percent or 137.69 points to end at 26,787.33 points. As many as 413 shares were active; of which 243 increased, 162 decreased and eight remained unchanged.

The ready market volumes stood at 345.047 million shares as compared to a turnover of 302.127 million shares a day earlier.

Analyst Ali Raza at Elixir Securities said equities succumbed to profit-taking for the fourth consecutive session with the benchmark KSE-100 index going below the 51,000-point level albeit on dismal volumes.

“Market traded with bearish sentiments throughout the day as profit-taking in the major sectors notably financial, power, cement and auto kept the index deep in the red,” Raza said.

Hub Power Company was down 1.8 percent, Pak Suzuki dropped 2.67 percent, Lucky Cement decreased 1.14 percent, United Bank dipped 1.15 percent and Engro Corp dropped 0.86 percent. They were the major laggards of the day.

On the other hand, Pakistan Oilfields was up 2.12 percent, Pakistan Petroleum increased 1.06 percent and Mari Petroleum edged up 1.24 percent on rising oil prices.

Despite continued profit-taking, analysts don’t see any major downside ahead and the market is likely to consolidate around the current levels for the time being before it resumed its advance to the previous record high.

Companies, reflecting the highest gains, included Exide Pakistan up Rs45.35 to close at Rs952.35/share and Bhanero Textile rising Rs42.04 to end at Rs882.93/share.

Companies, with most losses, included ICI Pakistan down Rs48.70 to end at Rs1,114.61/share and Colgate Palmolive falling Rs25 to close at Rs2,200/share. Highest volumes were witnessed in Silk Bank with a turnover of 24.301 million shares. The share inched up four paisas to close at Rs1.91/share.

Summit Bank was the second with a turnover of 21.457 million shares. It gained 29 paisas to end at Rs6.63/share. Kohinoor spinning was the third with a turnover of 16.24 million shares. It rose 76 paisas to finish at Rs7.22/share.