Stocks in fresh selloff on FATF concerns

Stocks fell on Friday as investors remained concerned about the impact of Pakistan being put back on FATF terrorist watch list ahead of rollover week, dealers said.

Ahsan Mehanti at Arif Habib Corp said stocks closed lower on concerns over economic uncertainty given widening trade and external account deficit. “Institutional support was witnessed in textile scrips on reports of likely extension of EU GSP Plus status,” Mehanti said. “However, foreign outflows amid uncertainty over outcome of US motion by FATF and falling foreign exchange reserves played a catalytic role in bearish close at the PSX.”

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index shed 0.6 percent or 261.31 points to close at 43,267.20 points. KSE-30 shares index shed 0.39 percent or 84.69 points to close at 21,734.43 points. As many as 366 scrips were active of which 95 advanced, 246 declined and 25 remained unchanged.

The ready market volumes stood at 244.50 million shares as compared with the turnover of 190.64 million shares a day earlier.

An analyst at Arif Habib Limited said market started the day at a positive note, carrying on with the previous day’s sentiment, but, investors participated with a view of sell on strength. “Later during the day, the news of FATF (Financial Action Task Force) putting Pakistan back on grey list made the rounds, which caused the market to go down.”

Cement and fertilizer sectors got the major part of the brunt among other blue-chip scrips. News of Pak Elektron being debarred by World Bank for 33 months, also caused the stock price to hit lower circuit which persisted till market close.

Investor interest was seen in blue-chips including Pakistan Oilfields, up 3.9 percent, MCB Bank, up 0.99 percent and Kot Addu Power Company, up 1.3 percent.

Selling pressure was witnessed in Dawood Hercules, down 3.9 percent, Pakistan Petroleum, down 1.45 percent, Oil & Gas Development Company, down 0.63 percent and D.G Khan Cement, down 3.0 percent.

Companies reflecting highest gains include Bata Pakistan up Rs122.45 to close at Rs2,706.5/share and Wyeth Pakistan up Rs55.36 to close at Rs1,786.36/share.

Companies reflecting most losses include Nestle Pakistan down Rs104 to close at Rs11,970/share and Sanofi Aventis down Rs49 to end at Rs1,401/share.

Highest volumes were witnessed in Dost Steels with a turnover of 27.47 million shares. The scrip shed 21 paisas to close at Rs13.25/share. Azgard Nine was second with a turnover of 15.617 million shares. It gained 04 paisas to close at Rs17.63/share. TRG Pakistan was third with a turnover of 14.65 million shares. It shed Rs1.26 to close at Rs35.58.