Stocks close down as investors opt for profit-taking

Stocks closed in the red on Monday as investors booked profits in blue chip fertiliser and energy shares while eyeing the upper house for the new tax package, dealers said.

Pakistan’s President Mamnoon Hussain ratified the tax amnesty scheme earlier. “This sent positive signals that following the whitening of funds some would trickle down in the country’s stock market,” a dealer said.

Analyst Ahsan Mehanti at Arif Habib Corp said, “After decline at the international market, domestic market also dropped, replicating the global trend.” Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index shed 0.12 percent or 57 points to close at 46,530.81 points. KSE-30 shares index lost 0.26 percent or 61.63 points to close at 23,361.57 points. As many as 378 scrips were active, of which 189 gained, 168 were in red, and 21 remained unchanged.

The ready market volumes stood at 202.78 million shares as compared with the turnover of 248.14 million shares in the last session. Topline Securities in a post-market note said that equities remained dull whereas volumes fell by 18 percent versus the last day as investors’ await discussion on the new tax reforms package.

“The benchmark index lost its bullish momentum of the last eight successive sessions,” the brokerage added. Crude oil price also recorded decrease which led to decline in oil shares such as Pakistan State Oil, down Rs4.54 to Rs330.63/share, and Shell Pakistan, down Rs7.78 to Rs357.97/share.

Fertiliser sector rallied on expected better financial results for the first quarter of FY18 owing to growth of around 46 percent YoY in urea off takes, coupled with possible reduction/elimination of GIDC on feed gas, an analyst said.

Among steels, Crescent steel gained three percent as the company shared information about the award of a new contract amounting to Rs1.7 billion by Sui Northern Gas Pipeline. Companies with the highest gains included Rafhan Maize, up Rs50 to close at Rs8,400/share, and Island Textile, up Rs39 to close at Rs838/share.

Companies with most losses were Bata Pakistan, down Rs156.45 to close at Rs2,972.55/share, and and Colgate Palmolive, down Rs155 to close at Rs3,100/share. Highest volumes were witnessed in Fauji Cement with a turnover of 18.49 million shares. The scrip gained 42 paisas to close at Rs31.87/share. Engro Polymer was second with a turnover of 15.53 million shares. The scrip gained 58 paisa to close at Rs38.68/share. TRG Pakistan was third with a turnover of 13.441 million shares. It gained 59 paisa to close at Rs36.97/share.