PSX falls with energy shares; global crude prices weigh

Stocks resumed bearish trend and fell one percent on Thursday as lack of any positive trigger, fall in WTI prices and continuing weakness in global markets remained key concerns for investors, dealers said.

Analyst Zain-ul-Abedin at Elixir Securities said equities closed negative with benchmark KSE-100 settling below 43,700 points on profit-taking in index names.

“Day kicked off on a negative note with oils denting the index in early trade as investors tracked overnight losses in global crude,” the analyst added.

Pakistan Stock Exchange (PSX) KSE-100 shares index shed 0.94 percent or 416.62 points to close at 43,679.87 points.

KSE-30 shares index shed 1.01 percent or 223.41 points to close at 21,829.49 points.

As many as 370 scrips were active of which 117 advanced, 237 declined and 16 remained unchanged.

The ready market volumes stood at 246.01 million shares as compared with the turnover of 269.98 million shares a day earlier.

Analyst Ahsan Mehanti at Arif Habib Corp said stocks closed bearish after slump in global oil prices amid boom in US output.

Oil stocks battered after WTI crude fell near to $61/bbl, and concerns loomed over global equities selloff and foreign outflows on surging US interest rates, the analyst said.

“Dismal sales of petroleum products due to concerns on SBP (State Bank of Pakistan) policy rate tightening on leveraged stocks and dull results in cement played a catalytic role in the bearish close at the PSX,” the analyst said.

Later, sentiments turned sour in cement sector as Cherat Cement, down 5.0 percent announced lower than expected core earnings. Another key announcement was from Engro Fertilizers, up 1.6 percent that closed with modest gains after the company posted inline earnings but surprised investors with a higher cash payout.

Financials skidded lower on relatively lesser activity with index heavy MCB Bank, down 2.4 percent, Habib Bank, down 0.9 percent and United Bank, down 1.0 percent - all contributing to declines. On the corporate front, Unity Foods, up 4.8 percent announced commencement of edible oil refinery operations that sent the stock sky-rocketing to its upper price limit.

Volatility is likely in the coming session while analysts advise investors to take advantage of the current weakness and build position in value plays.

Companies with highest gains included Murree Brewery, up Rs48 to close at Rs1,008.17/share, and Island Textile, up Rs47.50 to close at Rs997.50/share. Most losses were recorded in Rafhan Maize, down Rs216 to close at Rs7,501/share, and Sanofi Aventis, down Rs82.37 to end at Rs1,587.63/share.

Highest volumes were witnessed in Bank of Punjab with a turnover of 16.59 million shares. The scrip shed 46 paisas to close at Rs9.72/share. Fauji Foods was second with a turnover of 16.15 million shares. It gained Rs1.09 to close at Rs23.06/share. Unity Foods was third with a turnover of 14.11 million shares. It gained Rs1.3 to close at Rs28.44/share.