Stocks lose as players mark a profit-taking day post IMF-nod

Stocks on Thursday snapped three-session gaining streak as investors, having been relieved following approval of International Monetary Fund (IMF) bailout, observed a profit-taking day, making the most the available opportunities, dealers said.

Salman Ahmad, head of institutional sales at Aba Ali Habib said one reason for this decline was technical as in the last three session’s index had gained 995 points and the second was media reports that cement distributors had gone on strike, resulting in slower sales and lower margins of the companies.

Ahmed said there was no negative factor which could disturb the price pattern because most of the developments had already been discounted. “We are hoping a positive outcome from Prime Minister Imran Khan visit to the USA, during the current month, which might bridge the [trust] gap and help improve trade relations”, he added.

Pakistan Stock Exchange’s (PSX) benchmark KSE-100 shares index lost 0.93 percent or 325.93 points to close at 34,570.62 points level, whereas KSE-30 shares index went down 1.04 percent or by 172.24 points to end at 16,338.82 points level. Of 318 active scrips, 61 moved up, 241 retreated, and 16 remained unchanged. The ready market volumes stood at 111.859 million shares, as compared with a turnover of 130.429 million in the previous session.

Topline Securities in its daily market review said equities shifted momentum post-IMF approval as the benchmark index closed lower.It further said that All Pakistan Cement Dealers Association was currently on strike which adversely impacted the sales of major cement companies, eroding 72 points.

An analyst from Ismail Iqbal Securities said negative sentiments were due to investors’ concern over high inflation and interest rate scenario to prevail in the economy under the IMF program going forward.

Moreover, a positive portent for the capital market would be Pakistan to tap the overseas bond market in the coming months for the sale of Eurobond, Sukuk, and Chinese renminbi bonds, the analyst added. "We foresee the index to take a short term breather in next week in anticipation of arrival of IMF’s assistance, hence, investors are advised to stay cautious and tilt their portfolios towards blue-chip stocks", an analyst from Habib Metro-Finance said.

According to a leading analyst the appearance and attachment of the immovable properties under the “Benami Act” sent negative signals amongst the market men as they feared that there was a probability that names of businessmen might appear for benami properties.

If it happened and was translated into concerted news, it would result into a severe block, the analyst said, adding, already names of Thatta Cement and Summit Bank had popped up where shares held by the companies were attached under Benami Act.

The highest gainers were Unilever Foods, up Rs275.00 to close at Rs5775.00/share, and Sapphire Fibre, up Rs44.75 to finish at Rs950.00/share.

Companies that booked highest losses were Bata Pakistan, down Rs58.98 to close at Rs1341.02/share, and Abbott Laboratories, down Rs22.17 to close at Rs446.83/share. K-Electric Limited recorded the highest volumes with a turnover of 8.979 million shares. The scrip lost Rs0.05 to close at Rs4.29/share.

The lowest volumes were witnessed in Engro Polymer recording a turnover of 3.332 million shares, whereas the scrip lost Rs0.99 to end at Rs28.60/share.