Stocks end down on foreign outflows

Stocks on Monday closed lower as foreign outflows and Panama woes dampened market sentiments, dealers said. 

Elixir Securities, in a report, attributed the weak market sentiments to Panama case and foreign outflows, which even dashed recovery hopes on leverage product reintroduction.  The Pakistan Stock Exchange’s benchmark KSE 100-share Index closed lower 0.57 percent or 265.22 points to close at 46,593.34 points. The highest index of the day stood at 47,083.37 points, while the lowest level of the day was recorded at 46,314.27 points. KSE 30-share Index also fell 0.29 percent or 70.98 points to end at 24,246.28 points.

Turnover, however, increased 41 million shares to 170.26 million shares. Trading value rose to Rs9.14 billion from Rs7.47 billion, while market capital expanded to Rs9.49 trillion from Rs9.36 trillion in the last session. Of 360 companies active in the session, 110 closed up, 216 ended down and 34 remained unchanged.

Analysts said market opened and traded in positive territory for a brief period and then drifted lower on thin activity, sinking by over 540 points or 1.2 percent during intra-day trade.

“We expect volatile trading to continue with flows in the Index names being the key to any possible recovery in near term,” said Elixir Securities.

Major sectors, including fertiliser, cement and financial closed lower on reported institutional selling as well as no major buying interest from retail sector. Oil sector, however, garnered interest in late trading and helped the market to pare losses as investors tracked surge in global crude prices.

Highest increase was recorded in Jubilee Life Insurance by Rs22.76 to close at Rs823/share, followed by Otsuka Pak that was up Rs11.41 to end at Rs239.65/share. Major decrease was in Bata (Pak) by Rs150 to end at Rs3,350/share, followed by Wyeth Pak Ltd XD that was down Rs109.65 to close at Rs2,083.35/share.

Significant turnover was recorded in WorldCall Telecom, K-Electric Ltd, TRG Pak Ltd, Bank of Punjab, Avanceon Ltd, Engro Polymer, Aisha Steel Mill, Dost Steels Ltd, Summit Bank (Con) B and Bank of Punjab.

WorldCall Telecom remained the volume leader with 15.41 million shares with an increase of 16 paisas to close at Rs3.71/share.

It was followed by K-Electric Ltd with 10.80 million shares with a drop of 13 paisas to end at Rs6.92/share.

Turnover in the future contracts increased to 27.78 million shares from 16.71 million shares traded in the previous session.