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Business

OC
Our Correspondent
November 16, 2017

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Stocks extend losses on oil fall

Stocks extend losses on oil fall

Stocks on Wednesday witnessed another bearish session as oil fall and super tax continuation for another year dampened investors already facing headwinds of political uncertainty, dealers said.

Analyst Ahsan Mehanti at Arif Habib Corp said stocks closed bearish amid thin trade as investors were concerned over the country’s downgrade in the Morgan Stanley Capital International (MSCI) emerging market index and political uncertainty.

US index provider MSCI cut Pakistan’s weightage to 0.081 percent from 0.14 percent in its semi       annual index review.

“Institutional support remained in selected oil, fertiliser and auto stocks on surging urea prices, upbeat car sales and ADB’s (Asian Development Bank) project loan approval,” Mehanti said. 

The KSE 100-share index of Pakistan Stock Exchange shed 0.69 percent or 280.99 points to close at 40,662.79 points. KSE 30-share index fell 1.13 percent or 234.96 points to end at 20,600.49 points. As many as 367 shares were active; of which 145 increased, 201 decreased and 21 remained unchanged.

The ready market volumes stood at 90.37 million shares as compared to 140.08 million shares a day earlier.

Arif Habib Limited, in a report, said the market felt the heat on account of the Federal Board of Revenue’s extending super tax on banking companies for the tax year 2017 and 1.8 percent decline in international oil price to $55.70/barrel. 

Elixir Securities, in a report, said participants will continue to look towards institutional flows in absence of near-term triggers. “We expect range bound market with KSE 100 index likely finding support near current levels.”

Soft oil price kept the exploration and production sector under check, while Engro Corp fell 44 points as it was downgraded to MSCI small cap index from MSCI midcap index.

Other major dents to KSE-100 index came largely from Habib Bank (down 2.3 percent), Oil and Gas Development Company (falling 2.4 percent), MCB Bank (shedding 2.4 percent), Pakistan Petroleum (decreasing 1.6 percent) and Pakistan Oilfields (sliding 1.4 percent).

Although oil stocks tracked losses in international crude prices, Mari Petroleum managed to sustain the trend and was up 3.1 percent on hydrocarbon discovery announcement.

Companies reflecting highest gains included Colgate Palmolive up Rs108.99 to close at Rs2,321/share and Bata Pakistan that rose Rs90 to end at Rs2,590/share.

Companies with most losses included Sapphire Textile down Rs94.99 to end at Rs1,804.96/share and Phillip Morris Pakistan that fell Rs67.34 to close at Rs2,741.5/share.

Highest volumes were witnessed in Engro Corp with a turnover of 8.97 million shares. Its stock value shed Rs7.4 to close at Rs265.77/share.

Azgard Nine was the second with a turnover of seven million shares. It shed 24 paisas to end at Rs14.82/share.

Unity Foods (Rights) was the third with a turnover of 3.8 million shares. It inched down 13 paisas to finish at Rs4.80/share.

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