Stocks lose 2.38 percent as political noise grows louder

Stocks tumbled 2.38 percent on Thursday as political noise heightened after an accountability court summoned former prime minister and his sons for interrogation pertaining to their offshore assets, dealers said.

Analyst Ahsan Mehanti at Arif Habib Corp said panic gripped the sentiments after National Accountability Bureau summoned ex-prime minister in Panamagate references.  “Stocks closed bearish on political noise and economic uncertainty as investors are concerned about an outcome of an appeal filed by a former prime minister to the Supreme Court to dismiss Panama petitions,” Mehanti added.

The KSE 100-share Index of Pakistan Stock Exchange shed 2.38 percent or 1,050.90 points to close at 43,136.06 points. KSE 30-share Index also fell 2.57 percent or 586.38 points to end at 22,187.76 points. As many as 367 shares were active; of which 43 increased, 314 decreased and 10 remained unchanged.

The ready market volume stood at 167.265 million shares as compared to 187.249 million shares a day earlier. Falling global crude prices, trade deficit and circular debt issues in energy sector played a catalytic role in bearish close.

Elixir Securities, in a report, said equities tumbled with the benchmark KSE-100 Index finishing near 43,100-point level, down 2.4 percent most in the past over eight months. “Start to the day was on weaker note with the wider market failing to build on Wednesday’s momentum due to anxiety on political front,” the brokerage added. “Sentiments were primarily dented on news that country’s apex anti-corruption organisation has summoned the sacked PM and his sons for interrogation related to Panama allegations.”

Last Tuesday, the benchmark 100-share Index fell 3.11 percent as political ructions weighed on the investor sentiments. It, however, partially recovered the next day.  Notable blue-chips across all the major sectors along with sideboard names received hammering on reported institutional selling. 

Meanwhile, quarterly earnings announced by various companies also failed to have any impact on the activity in a wider market. Hub Power down 2.2 percent and Bank Al-Falah dropping 2.5 percent closed lower after the announcements of their results.

Analysts see the market to trade volatile and choppy with investors likely staying cautious amid prevailing political noise. Companies, reflecting highest gains, included Khyber Tobacco up Rs28.34 to close at Rs828.33/share and Jubilee Life Insurance that rose Rs19.9 to end at Rs799.90/share.

Companies, with most losses, included Rafhan Maize down Rs200 to end at Rs6,750/share and Phillip Morris Pakistan that fell Rs1,23.11 to close at Rs2,501/share. Highest volumes were witnessed in Azgard Nine with a turnover of 11.44 million shares. Its share value shed 61 paisas to close at Rs15.26/share.

Bank of Punjab was the second with a turnover of 11.074 million shares. Its stock price inched down 30 paisas to end at Rs10.29/share. TRG Pakistan was the third with a turnover of 9.639 million shares. It fell Rs1.94 to finish at Rs41.59/share.