Stocks lose for third day as economic angst lingers

Stocks on Wednesday lost for the third straight session as institutional investors continued to cut down their exposure on economic and geopolitical noise, traders said.

Pakistan Stock Exchange's (PSX) benchmark KSE-100 Share Index shed 98.24 points or 0.21 percent to close at 47,247.92 points, touching a day high of 47,375.67 points and a low of 47,034.64 points.

Muhammad Arbash, analyst at Topline Securities said equities came under some selling pressure after trading in a narrow range.

During the session, the market tested a low of 311 points as investors were concerned over high commodity prices, geopolitical concerns, and collection of CGT (Capital Gain Tax) for 11MFY21, he said.

Arbash added that however in the second half, some recovery was seen after the chatter that NCCPL might agree to include June 2021 in CGT calculation, which would reduce payables as a lot of investors has booked losses in June to net off gains.

TRG turned out to be best performing stock as it contributed the most to the index after notifying the exchange regarding their board meeting on July 14, 2021 to consider matters other than financial results.

KSE-30 Index also dropped 31.79 points or 0.17 percent to 18,973 points. Turnover shrank 129 million shares to 412.20 million against 541.30 million shares. Trading value went down to Rs14.97 billion against Rs17.61 billion. Market capital eased to 8.261 trillion from 8.294 trillion. Out of 412 active shares 172 strengthened, 222 weakened, while 18 ended as they had opened.

Ahsan Mehanti, analyst at Arif Habib Corp, said stocks closed lower amid global equity selloff and investor concerns over economic uncertainty.

Rupee instability and regional uncertainty proved drags for trade, Mehanti said.

He said mid-session support remained in banking, cement, and auto scrips ahead of financial result announcement next week and easing concerns for external account deficit with Eurobond issue of $1 billion.

The best gainer of the day was Rafhan Maize, up Rs249 to Rs9,899 per share, followed by Wyeth Pak Ltd, up Rs145.14 to Rs2,080.39 per share.

Being the worst loser, Unilever Foods shed Rs245 to close at Rs15,555 per share, followed by Pak Tobacco that lost Rs98.34 to end at Rs1,321.65 per share.

Brokerage Arif Habib Ltd in a report said the market continued to face selling pressure from institutional investors.

Cement, oil and gas exploration and production, banks, oil and gas marketing companies, and refineries bore selling pressure, whereas technology and steel sectors contributed positively to the index.

Stocks that posted notable turnover included Fauji Foods Ltd, WorldCall Telecom, TPL Corp Ltd, Unity Foods Ltd, Hascol Petrol, Byco Petroleum, K-Electric Ltd, Fauji Fertilizer Bin Qasim, Silk Bank Ltd, and Pak Int Bulk.

Fauji Foods was the volume leader with 41.17 million shares and it gained Rs1.21 to close at Rs19.71 per share. It was followed by WorldCall Telecom with 30.16 million shares and improved by five paisas to end at Rs3.91 per share.

Turnover in the future contracts increased to 62.99 million shares from 93.43 million traded in the previous session.