Stocks fall as financial results trigger profit-taking

Stocks closed negative on Wednesday as the gains made in the early sessions were pared off due to profit-taking by investors following financial results, dealers said.

Nauman Khan, head of research at Foundation Securities, said it was an eventful day with some of the major heavy weights like Fauji Fertilizer and MCB Bank announcing their first quarter results.

“Activity was once again dominated by 2nd and 3rd tier stocks while index was not able to sustain the last two days’ bullish momentum,” he said.

The budget schedule over the upcoming weekend would be the key market driver at least in the near term, Khan added.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index shed 0.35 percent or 158.36 points to close at 45,718.34 points. KSE-30 shares index shed 0.53 percent or 119.04 points to close at 22,509.21 points. As many as 393 scrips were active of which 132 advanced and 237 declined, whereas 24 remained unchanged.

The ready market volumes stood at 180.707 million shares as compared with the turnover of 154.282 million shares a day earlier.

BIPL Securities in its post-market note said the market traded in a negative zone most of the time during the session despite being surrounded by positive triggers.

“The sentiment at the local bourse got hurt by global sell-off as the US 10-year government bond yield hit three percent for the first time in about four years,” the brokerage said.

Notables that announced their results included Pak Elektron, Pak Suzuki, Cherat Cement and Allied Bank. Furthermore, definitive duty imposed by National Tariff Commission on imported PVC also created investors’ interest in Engro Chemical, which was the volume leader at the bourse.

The index is expected to stay range-bound till the federal government announces the budget on Friday. “It is too early to say what measures would be announced in the budget for the capital market,” a leading trader said.

Companies with the highest gains included Siemens Pakistan, up Rs42.97 to close at Rs1,014.02/share, and Island Textile, up Rs42.75 to close at Rs897.75/share.

Companies with the most losses were Colgate Palmolive, down Rs169.98 to close at Rs3,280.02/share, and Bata Pakistan, down Rs132.23 to Rs2,512.38/share.

Highest volumes were witnessed in Engro Polymer with a turnover of 23.84 million shares. The scrip gained 92 paisas to close at Rs39.25/share. It was followed by Unity Foods Ltd with a turnover of 12.26 million shares. Its scrip gained Rs1.57 to close at Rs33.05/share.

Lowest volumes were witnessed in Pak Electron with a turnover of 20.39 million shares. Its scrip fell Rs1.9 to close at Rs44.06/share.