KSE lowers below 32,000-level on weak global commodities

Karachi stocks on Friday lost one percent to lower below the 32,000 level as weak global commodities increased the likelihood of foreign selling, dealers said.

Dealers said trade remained thin after global commodities dipping lower to have affected the earnings outlook in commodity stocks and raised fears for capital outflows in the emerging markets.

The KSE 100-share Index shed 332.50 points, or 1.0 percent, to close at 32,777.04 points.

The KSE 30-share Index fell 246.97 points, or 1.26 percent, to end at 19,319.32 points.

As many as 325 scrips were active; of which 100 increased, 195 decreased and 30 remained unchanged.

The ready market volumes stood at 114.378 million shares as compared to 142.182 million shares in the last trading session.

Analyst Ahsan Mehanti at Arif Habib Corp said stocks plunged amid sharp fall in global equities. 

“Political resistance over privatisation of state-owned enterprise, rising public debt and delay in textile bailout package amid falling exports played a catalyst role in the bearish activity,” Ahsan Mehanti said.

Going forward, analysts see volatile trading during a short working and a rollover week.

However, activity in the wider market will likely to pick up pace with the KSE-100 Index expected to test 34,000 ahead of the year-end, said the analysts.

An analyst at Elixir Securities said that the equities halted the two-day winning streak and dropped one percent after the sentiments of wider market were hit hard on news that a United States regulator asked a Pakistani bank’s New York branch to take measures to curb money laundering.

Most of the sectors, including cements and fertilisers traded lackluster and closed lower with oil and energy mostly seeing profit-taking. 

Moreover, small- and mid-cap also struggled and failed to find direction ahead of the weekend. 

Companies reflecting highest gains included Ferozsons Laboratory up Rs33.91 to close at Rs1,093.13/share while Sapphire Fiber increased Rs29.5 to end at Rs779.5/share.

Companies, with major losses, included Rafhan Maize down Rs287.5 to finish at Rs8,500/share while Nestle Pakistan decreased Rs89.89 to close at Rs7,000.11/share.

Highest volumes were witnessed in Habib Bank with a turnover of 7.761 million shares.

The scrip shed Rs10.96 to close at Rs208.32. It was followed by Bank of Punjab with a turnover of 6.305 million shares.

The stock value dropped 26 paisas to end at Rs9.13/share.

Pakistan International Bulk Container Terminal (PIBCT) was the third with a turnover of 5.899 million shares.  It gained 55 paisas to finish at Rs29.25/share.