Stocks slide as investors fret about dismal economic data

Stocks closed the week on a depressed note on Friday as selling was witnessed in blue-chip financial and energy shares amid political uncertainty and poor economic indicators, dealers said.

Financial institutions were in high spirit during the first half, but the market turned choppy on a false alarm that the Securities and Exchange Commission of Pakistan had initiated an inquiry, dealers added.

Analyst Ahsan Mehanti at Arif Habib Corporation said political uncertainty, doubts over approvals on new textile package, unattended tax proposals in the federal budget and concerns over surging circular debt played a catalytic role in the bearish close.

“Stocks closed bearish on investor concerns over dismal data of $29.8 billion for July-April 2018 on trade deficit and fall in remittances,” the analyst added.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index shed 0.60 percent or 260.99 points to close at 43,594.79 points. KSE-30 shares index shed 0.60 percent or 128.72 points to end at 21,378.62 points. As many as 371 scrips were active of which 91 advanced, 255 declined, and 25 remained unchanged.

The ready market volumes stood at 164.686 million shares compared to a turnover of 196.268 million shares a day earlier.

BIPL Securities in its post-market note said the bourse continued its choppy trend and kept afloat during the first session as foreign exchange reserves of Pakistan shrunk further by three percent on a weekly basis to stand at $17.29 billion.

Trade deficit of the country narrowed by a meagre 5.97 percent to $2.97 billion coupled with remittances which grew seven percent, and exports that recorded 19 percent year-on-year, it said, and added that investors mostly booked profits in banking and energy sectors.

Companies with the highest gains included Bhanero Textile, up Rs37.50 to close at Rs787.51/share, and ICI Pakistan, up Rs15.00 to close at Rs900.00/share.

Companies recording the most losses were Unilever Foods, down Rs354.05 to close at Rs8,100.00/share, and Bata Pakistan, down Rs110.22 to close at Rs2,318.78/share.

Dewan Cement, with a turnover of 13.639 million shares, posted the highest volumes. The scrip gained 17 paisas to close at Rs19.67/share. It was followed by Sui Southern Gas with a turnover of 11.806 million shares, gaining Rs1.47 to close at Rs36.69/share.

First Dawood Bank, with a turnover of 12.771 million shares, posted lowest volumes. Its scrip fell 99 paisas to close at Rs4.02/share. It was followed by Fauji Cement with a turnover of 11.468 million shares, while its scrip shed 3 paisas/share.