Stocks close down; foreign investors on selling spree

Stocks closed down on Thursday after a choppy session as political uncertainty in the country combined with weak macros discouraged domestic investors while foreigners went on a selling spree, dealers said.

Topline Securities in its post-market note said market activity could not pick its pace during the day, as investors were not getting any updates on lingering political and economical issues. Rising deficit, depleting foreign reserves, ongoing sessions in Bangkok related to Financial Action Task Force, and inconclusive meetings over the selection of caretaker prime minister dented sentiments.

“Foreigners have sold over $45 million worth of equities in Pakistan during May 2018 that is almost double than April 2018 on back of global emerging market selloff and domestic issues,” the note said.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index shed 0.55 percent or 236.09 points to close at 42,536.16 points. KSE-30 shares index shed 0.68 percent or 142.74 points to close at 20,843.30 points. As many as 337 scrips were active of which 111 advanced and 198 declined, whereas 28 remained unchanged.

The ready market volumes stood at 127.17 billion shares as compared to the turnover of 131.33 billion shares in the previous session.

Analyst Ahsan Mehanti at Arif Habib Corporation said that pending circular debt, surging current account deficit for July-April FY18, and concerns over higher fiscal deficit resulted in the bearish close, despite expected $2 billion inflows by May 31 to arrest rupee volatility.

“Stocks closed lower amid cautious activity ahead of SBP (State Bank of Pakistan) policy rate decision tomorrow (Friday) on concerns on economic and political uncertainty,” the analyst added.

Cements were among the major decliners as investors’ eyed the ongoing expansionary wave with scepticism. Lucky Cement down 2.8 percent dented the benchmark the most and traded at levels last seen in January. Financials closed mixed with United Bank and Habib Bank ending flat, while MCB closed with a fall of 1.5 percent on good activity.

Companies with the highest gains included Unilever Foods, up Rs381.00 to close at Rs8,379.00/share, and Philip Morris Pakistan, up Rs99.57 to close at Rs2,999.57/share.

Companies with the most losses were Rafhan Maize, down Rs200.00 to close at Rs8,000.00/share, and Colgate Palmolive, down Rs150.00 to close at Rs2,850/share.

Highest volumes were witnessed in Faysal Bank with a turnover of 11.921 million shares.

The bank’s scrip gained 71 paisas to close at Rs24.70/share. It was followed by First Dawood Bank with a turnover of 10.978 million shares. Its scrip gained 6 paisas to close at Rs4.76/share.

Lowest volumes were witnessed in K-Electric Limited with a turnover of 5.095 million shares. Its scrip lost 7 paisas to close at Rs6.05/share.