Stocks fell on Thursday as investors were concerned about the outcome of Financial Action Task Force’s (FATF) meeting next week, which would take up putting Pakistan back on watch list because of the deficient anti-money laundering regime, dealers said.
Analyst Ahsan Mehanti at Arif Habib Corp said stocks closed lower on rising political noise, reports of Pakistan’s likely inclusion on the US watch list, and possible sanctions.
“Financial scrips outperformed on reports of rising banking spreads, however foreign outflows, lower global crude oil prices and dismal petroleum products’ sale played a catalytic role in the bearish close at the PSX,” the analyst added.
Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index shed 0.95 percent or 410.69 points to close at 42,942.35 points.
KSE-30 shares index shed 0.98 percent or 211.44 points to close at 21,453.70 points.
As many as 381 scrips were active of which 88 advanced, 277 declined and 16 remained unchanged.
The ready market volumes stood at 219.48 million shares as compared with the turnover of 206.98 million shares a day earlier.
Topline Securities in its post-market note said equities closed negative for the second consecutive session with KSE‐100 shedding 0.95 percent to 42,942 index level.
“Investors treaded cautiously ahead of the Financial Action Task Force’s (FATF) key meeting in Paris next week as US and few European countries plan to table a motion with FATF to put Pakistan back on its watch list, where it was last put from 2012-2015,” the report said.
Interest was seen in mid-tier banks amid attractive valuation as Habib Metropolitan Bank, Faysal Bank and Bank Al Habib rose 3.9 percent, 3.0 percent, and 3.2 percent, respectively.
Profit-taking was witnessed across the board as index names, including Lucky Cement, down 2.3 percent, Hub Power, down 1.9 percent, Pakistan Oilfields, down 2.1 percent, Pakistan Petroleum, down 1.1 percent, and Fauji Fertilizer closed down 1.6 percent.
Moving forward, analysts expect the market to remain volatile with flows from local institutions and foreigners directing the market.
Companies with highest gains included Indus Motors, up Rs16.36 to close at Rs1,729.09/share, and Millat Tractors, up Rs14.1 to close at Rs1,293.11/share.
Companies with most losses included Nestle Pakistan, down Rs489.98 to close at Rs11,010.01/share, and Sapphire Textile, down Rs87.68 to end at Rs1,666.1/share.
Highest volumes were witnessed in Azgard Nine with a turnover of 19.86 million shares. The scrip gained 70 paisas to close at Rs19.32/share.
PTCL was second with a turnover of 15.38 million shares. It shed 07 paisas to close at Rs12.54/share. Fauji Foods was third with a turnover of 14.049 million shares. It gained 10 paisas to close at Rs25.46/share.
