Stocks trip as economy on slippery slope

Stocks stumbled on Friday on rupee depreciation deepening, steeping investors in doubts over whether the new regime would be able to prop up the crippled economy in the near-term, traders said.

Pakistan Stock Exchange's (PSX) benchmark KSE-100 Shares Index inched lower by 90.60 points or 0.22 percent to 45,553.02 points after trading between the tight range of 45,776.23 and 45,500.86 points.

Nabeel Haroon at Topline Securities attributed the muffled trading activities to economic worries that were only increasing by the day.

PSEL, KAPCO, COLG, PAKT and DAWH lost value to weigh down on the index by 139 points, he said.

“Going forward, we recommend investors to avail the ongoing correction as a buying opportunity with a focus on refineries, oil and gas and banking sectors,” said Neelam Naz at JS Research.

KSE-30 Shares Index, however, ticked up 19.37 points or 0.11 percent to 17,589.31 points compared with 17,569.94 points recorded in the last session.

Traded volume increased 31 million to 217.53 million from 186.43 million shares, whereas value decreased to Rs5.296 billion from Rs5.621 billion. Turnover in the futures’ contracts swelled to 71.91 million shares from 52.77 million.

Market capital shrank to Rs7.608 trillion from Rs7.618 trillion.

Out of 316 companies active in the session, 92 advanced, 198 retreated, while 21 ended unmoved.

Ahsan Mehanti, an analyst at Arif Habib Corp, said economic uncertainty remained the nemesis of the stocks.

However, he said, midsession support was seen in fertiliser and oil sector on results strength.

The slump in global equities, uncertainty over the outcome of Pakistan-IMF talks, and rupee instability took a lot of wind out of the sails of the stock market, he said.

The highest increase was recorded in share prices of Rafhan Maize, which surged Rs350 to Rs11,800 per share, followed by Nestle Pakistan, up by Rs117.13 to close at Rs5,618.13 per share.

Pakistan Services slumped Rs125.25 to Rs1,544.75 per share. Colgate Palmolive was the second worst loser of the day, shedding Rs110 to close at Rs2,225 per share.

Arif Habib Ltd in a post-market note said trade remained limited as rupee continued to lose against dollar amid concerns over a spike in T-Bill yields.

Stocks succumbed to profit-selling after a good start and the secession remained lacklustre except for 3rd tier stocks that remained in the limelight despite overall dullness, the report noted.

Major laggard sectors included miscellaneous (-66.8 points), chemical (-30.5 points), fertiliser (-25.9 points), banks (-4.8 points), and power (-21.2 points).

Cnergyico PK topped the volume chart with 23.64 million shares. The tech stock closed higher by 16 paisas to Rs6.66 per share.

The second highest traded stock was Hum Network that posted a turnover of 23.60 million shares. The media stock rose by 38 paisas to Rs8.21 per share.

Stocks that recorded significant turnover included Lotte Chemical, TPL Properties, Ghani Global Holdings, Telecard Limited, WorldCall Telecom, Pakistan Refinery, Ghani Global Glass, and Treet Corp.