Stocks fall on fears for economy

Stocks slipped on Friday, hobbled by uncertainty as weak economic data weighed on investor risk appetite, with blue-chip dragging on the index, dealers said.

They added that the investors, waiting for a positive development on macro/fiscal side from the government to arrest external account woes, preferred to stay on the sidelines. Ahsan Mehanti at Arif Habib Corp the market witnessed pressure in across the board on weak global equities and challenging dismal economic data, including $24.464 billion projected external financing needs in FY2018.

“Institutional support remained in oil and banking scrips on recovery in global crude prices and reports on rising banking spreads. However, concerns over surging current account deficit and likely surge in industrial gas tariff played a catalytic role in bearish close at PSX.”

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index shed 0.3 percent or 131.86 points to close at 43,363.21 points. KSE-30 shares index shed 0.59 percent or 126.82 points to close at 21,550.69 points. As many as 363 scrips were active of which 132 advanced, 219 declined and 12 remained unchanged.

The ready market volumes stood at 193.39 million shares as compared with the turnover of 220.44 million shares a day earlier. An analyst at Arif Habib Limited said market ended the week on a negative tone, though the day started with optimism that institutions would become active and take active positions for next week. “FTSE rebalancing is to take effect on Monday; however related scrips saw activity on the downside.”

Dealers said volumes in off-board scrips dominated the index throughout the week and similar activity was witnessed on Friday. Steel, cement and banks remained at the backburner. Pak Elektron showed significant volumes after result announcement, which was anticipated to be negative, however, post result announcement volumes surged along with price.

Stocks including Oil & Gas Development Company (up 0.4 percent), Sui Northern Gas (up 1.7 percent) and Dawood Hercules (up 1.13 percent) witnessed selective buying, while Lucky Cement (down 1.0 percent), Engro Corp (down 0.9 percent) and United Bank (down 1.5 percent) came under selling pressure.

Companies reflecting highest gains include Bhanero Textile up Rs30 to close at Rs695/share and Siemens Pakistan up Rs21 to close at Rs952/share. Companies reflecting most losses include Millat Tractors down Rs43.40 to close at Rs1,254.39/share and Pakistan Tobacco down Rs40 to end at Rs2,105/share.

Highest volumes were witnessed in Pak-Elektron with a turnover of 16.42 million shares. The scrip gained 78 paisas to close at Rs46.54/share. Lotte Chemical was second with a turnover of 13.28 million shares. It shed 14 paisas to close at Rs10.01/share. Nimir Resins was third with a turnover of 13.22 million shares. It shed 06 paisas to close at Rs10.14.