Thu April 26, 2018
Advertisement
Can't connect right now! retry

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!

Business

January 13, 2018

Share

Advertisement

Stocks fall over political disturbances, lagging indicators

Stocks fall over political disturbances, lagging indicators

Market took a negative turn on Friday, influenced by a host of factors including problems in macro-economic indicators, political disturbance, profit-taking, and concerns regarding redemptions from mutual funds, dealers said.

An analyst at Topline Securities said market appears to be consolidating around current levels with healthy participation.

“Meanwhile, WTI crude oil has broken $64/bbl (intraday), taking it to levels not seen since December 2014. This will offer an upside trigger for E&Ps going forward,” the brokerage said.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index shed 1.06 percent or 461.56 points to close at 42,933.72 points. KSE-30 shares index shed 1.05 percent or 229.19 points to close at 21,671.01 points. As many as 368 scrips were active of which 80 advanced, 276 declined and 12 remained unchanged.

The ready market volumes stood at 238.67 million shares as compared with the turnover of 319.45 million shares a day earlier.

Analyst Ahsan Mehanti at Arif Habib Corp said bearish activity was witnessed in scrips across the board on concerns over surging domestic debt. “Widening trade deficit and ongoing political noise played a catalytic role in the bearish close at the PSX.”

Automobile sector remained under pressure as sales for December declined 9.0 percent. “Sales declined mainly on account of customers’ preference to get cars delivered in the new year,” Arslan Hanif at Arif Habib Limited said.

Pak Suzuki was down 1.4 percent, Honda Atlas Cars declined 1.0 percent, Indus Motor Company lost 0.67 percent while Dewan Motors closed at 2.94 percent.

Dealers said political uncertainty dampened market exuberance which resulted in profit-taking by domestic investors as the unfortunate incidents in Qasur added fuel to the ongoing struggle by Pakistan Awami Tehreek against the sitting government.

Steel sector witnessed profit taking as Amreli Steel shed 4.1 percent, International Steel Limited closed at its lower price limit and International Industries closed 3.0 percent down.

Moving forward, analysts expect market to continue its positive trend, however prevailing political situation may shake investors' confidence for the short-term.

Companies reflecting highest gains include Colgate Palmolive, up Rs134 to close at Rs2,834/share, and Wyeth Pakistan, up Rs92.20 to close at Rs1,936.36/share.

Companies reflecting most losses include Nestle Pakistan, down Rs500 to close at Rs10,900/share, and Sanofi Aventis, down Rs55.33 to end at Rs1,444.67/share.

Highest volumes were witnessed in TRG Pakistan with a turnover of 26.02 million shares. The scrip shed Rs1.03 to close at Rs32.89/share. Worldcall Telecom was second with a turnover of 15.22 million shares. It shed 10 paisas to close at Rs2.80/share. Azgard Nine was third with a turnover of 11.11 million shares. It shed 87 paisas to finish at Rs13.65/share.

Advertisement

Comments

Advertisement
Advertisement

Topstory

Opinion

Newspost

Editorial

National

World

Sports

Business

Karachi

Lahore

Islamabad

Peshawar