Stocks snap winning streak, end lower on profit-taking

Stocks snapped a winning streak to end lower on Monday as investors booked profits in cement and energy shares ahead of futures rollover week, dealer said.

“After three days of rally, market lost its ground to profit taking and drifted lower to close down,” Topline Securities said in its post market report.

The Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index shed 1.44 percent or 604.35 points to close at 41,483.54 points. KSE-30 shares index shed 1.77 percent or 378.81 points to close at 21,037.88 points. As many as 380 scrips were active of which 101 advanced, 257 declined and 22 remained unchanged.

The ready market volumes stood at 153.465 million shares as compared with the turnover of 261.229 million shares a day earlier.

An analyst at Elixir Securities said equities snapped three-day gains to close lower on profit-taking. “Market opened and traded sideways for a brief period and afterwards the index succumbed to reported selling, both from local and foreign institutional investors.”

Steels grabbed attention in the morning where specifically long-steel producers such as Amreli Steels (ASTL), up 5.0 percent and Mughal Steel (MUGHAL), up 5.0 percent, opened limit up on imposing of anti-dumping duty of 19.15 percent on Chinese imported re-bars.

Later, cements led declines as investors resorted to booking profits after the recent gains that, notably, pushed up DG Khan Cement (DGKC), down 5.0 percent and Lucky Cement (LUCK), down 4.4 percent.

Among the worst performers, oils stood second in line with all names seeing a red finish despite an increase in crude prices over the weekend. Overall, main board names fetched limited institutional interest while second and third tier names also saw limited activity as retail investors traded cautiously on start of futures rollover week.

Going forward, analysts expect flows both from locals and foreigners to guide market direction. Ongoing earnings season is likely to keep investors’ interest intact in select names, however, activity in wider market may remain low as retail investors trade cautiously during futures rollover week.

Companies reflecting highest gains include Rafhan Maize up Rs350 to close at Rs7,350/share and Unilever Foods up Rs336.5 to close at Rs7,136.5/share. Companies reflecting most losses include Bata Pakistan down Rs130 to close at Rs2,770/share and Nestle Pakistan down Rs125 to end at Rs12,300/share.

Highest volumes were witnessed in Dost Steels with a turnover of 19.575 million shares. The scrip gained 20 paisas to close at Rs13.73/share.

Azgard nine was second with a turnover of 15.338 million shares. It gained 69 paisas to close at Rs14.52/share. Sui Northern Gas was third with a turnover of 9.82 million shares. It gained Rs4.29 to finish at Rs126.19/share.