Stocks extend losses on profit-taking

Stocks extended losses on Thursday amid dull trade as investors shrugged off earning announcements and continued to take profits in blue-chips, dealers said. 

Analyst Maaz Mulla at JS Global said the market showed a positive momentum in the initial hours of trade, making an intra-day high of 669 points.  “However, profit booking in the later hours took the index down 359 points below the previous day close,” added Mulla.

The KSE 100-share Index of Pakistan Stock Exchange shed 0.79 percent or 358.78 points to close at 45,059.93 points.

KSE 30-share Index lost 0.76 percent or 178.80 points to end at 23,491.48 points. As many as 360 shares were active; of which 99 increased, 243 decreased and 18 remained unchanged.

Elixir Securities, in a report, said market opened gap up in the morning and the index edged up 1.3 percent within the first 15 minutes of trading as participants cheered news that Prime Minister Nawaz Sharif and his family submitted proof to the Supreme Court to support their claims of no illegal actions in financial dealings.

“Index, however, couldn’t sustain gains and extended losses on profit-taking and a general lack of buying interest,” the brokerage added. The ready market volume stood at 148.128 million shares as compared to 165.516 million shares a day earlier.

Dawood Herculues was down 4.8 percent after announcing the appointment of financial advisor for sale of its stake in Hub Power. It witnessed hammering as jittery investors were wary of uncertainty surrounding the deal timing and new buyer resorted to profit-taking.

Engro Corp falling 1.8 percent also added to recent losses after investors were left disappointed on no action by the company’s board. Pakistan State Oil shed 1.34 percent as its bank borrowings increased to Rs130 billion due to credit crunch.

Analysts expect volatile trading and selective participation in the near-term as anxiety over domestic politics will remain a dampener until any clarity emerges. Companies, reflecting highest gains, included Unilever Foods up Rs290 to close at Rs6,090/share and Phillip Morris Pakistan that rose Rs122.75 to end at Rs2,900/share.

Companies, with the most losses, included Sapphire Textile down Rs99.20 to end at Rs1,884.80/share and Colgate Palmolive that fell Rs96.33 to close at Rs2,302.67/share. Highest volumes were witnessed in TRG Pakistan with a turnover of 10.508 million shares.

The share value shed Rs1.05 to close at Rs36.87/share.

Aisha Steel was the second with a turnover of 8.035 million shares. It fell 78 paisas to end at Rs18.64/share. Dewan Motors was the third with a turnover of 7.201 million shares. It was down Rs2.03 to finish at Rs38.62/share.