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Thursday March 28, 2024

Stocks down as final verdict on Nawaz disqualification triggers sell off

By Our Correspondent
April 14, 2018

Stocks fell by 0.56 percent on Friday, ending the week in red as the final court verdict to disqualify former prime minister Nawaz Sharif for life triggered selling in blue-chip auto, cement, steel, and fertiliser shares, dealers said.

Analyst Salman Ahmad from Abba Ali Habib said the negative development on the political front dragged the index down on the weekend.

“Either next week or in the upcoming days, trend will be decided by political gravity while the investors will remain cautious owing to the upcoming federal budget and elections ahead,” he added.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index shed 0.56 percent or 259.85 points to close at 46,071.86 points.

KSE-30 shares index shed 0.90 percent or 208.85 points to close at 23,031.17 points.

As many as 367 scrips were active of which 132 advanced and 217 declined, whereas 18 remained unchanged.

The ready market volumes stood at 197.385 million shares as compared with the turnover of 332.906 million shares a day earlier.

An analyst from Arif Habib said, “The initial response of the market after the court verdict was a pause and slight recovery, perhaps a sigh of relief that the matter saw conclusion, however, later selling pressure resumed and blue chips saw pressure building up.”

KEL continued to play positive with high volumes in consecutive session on the expectation of deal clearance from relevant authorities. Banks, cement, steel, E&P and fertiliser failed to keep investors’ interest intact and ended the session in red.

BIPL securities in its post-market report said stocks fell over multiple reasons, including depleted foreign reserves, and $3.3 billion debt servicing due by June 2018.

Cements also posted decline as DG Khan Cement shed Rs5.38/share, whereas Lucky Cement fell Rs17.32/share over possible reduction of Rs20/bag in prices by the manufacturers in the southern region.

Auto shares also suffered a fresh set back. Atlas Honda shed Rs0.93/share whereas Indus Motors shed by Rs14.89/share.

Companies with the highest gains included Sapphire Textile, up Rs82.00 to close at Rs 1,828.00/share, and Colgate Palmolive, up Rs49 to close at 2900.00/share.

Companies with the most losses were Unilever Foods, down Rs349 to close at Rs9,401.00/share, and Bata Pakistan, down Rs74.17 to 2792.50/share.

Highest volumes were witnessed in K-Electric with a turnover of 36.158 million shares.

The scrip gained five paisas to close at Rs7.11/share. Lowest volumes were witnessed in Engro Polymer with a turnover of 10.86 million shares. The scrip fell 69 paisas to close at Rs39.22/share.