Stocks slide in thin trade on political uncertainty

Stocks closed down in thin trading on Wednesday as investors held off buying on concerns about political uncertainty in the country, dealers said.

“Investors adopted wait and see approach till any major developments on political and economic front,” Topline Securities said in a post market note. “However, upcoming budgetary measures can’t be ruled out, where talks related to GIDC reduction are creating excitement in fertilizer and chemical stocks, generating higher volumes as well.”

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index shed 0.71 percent or 323.10 points to close at 45,478.63 points. KSE-30 shares index shed 0.99 percent or 225.77 points to close at 22,544.56 points. As many as 382 scrips were active of which 115 advanced and 249 declined, whereas 18 remained unchanged.

The ready market volumes stood at 156.03 million shares as compared with the turnover of 147.46 million shares a day earlier. The market in the early session rose sharply and the benchmark index touched a high of 46,000 points but succumbed to selling pressure on lack of support.

The market has been facing resistance on technical levels of 46,500 and 46200 points since two weeks, which indicates more selling pressure likely to witness at the market.

Analyst Nauman Khan at Foundation Securities said the market was unable to sustain buying momentum and succumbed to selling pressure towards the later part of the day. “Banks pulled down the index as tightened of regulation on capital and credit may adversely affect their growth projections and payout capacity,” Khan said. “Furthermore lack of any macro trigger has also caused investors to book gain accumulated in last two months rally.” Fauji Cement fell by 0.67 percent to close flat despite an announcement that it has commissioned a Waste Heat Recovery Power Plant having a capacity of generating 9MW of electricity.

Maple Leaf Cement dropped 1.04 percent after posting a quarterly progress report which showed delay in commencement of commercial operation of its brown field expansion by a couple of months.

K-Electric fell 1.41 percent following the news that the NEPRA has decided to initiate legal proceedings against the company for excessive load shedding in Karachi. Companies with the highest gains included Khyber Tobacco, up Rs33.73 to close at Rs708.40/share, and Abbott Lab, up Rs27.87 to close at Rs743.48/share.

Companies with the most losses were Unilever Foods, down Rs401 to close at Rs9,000/share and Pak Services, down Rs40.50 to close at Rs900/share.

Highest volumes were witnessed bank of Punjab with a turnover of 8.577 million shares. The scrip gained 19 paisas to close at Rs9.54/share. Lowest volumes were witnessed in K-Electric with a turnover of 11.228 million shares. The scrip loss one paisa to close at Rs 7.00/share.