Stocks down on inflow limbo

Stocks tapered off on Friday as a deepening inflow drought has started casting doubts on the commitments made by the friendly countries to support Pakistan's flickering economy, traders said.

Pakistan Stock Exchange's (PSX) benchmark KSE-100 Share Index closed lower by 92.60 points or 0.22 percent to 41,679.49 points against 41,772.09 points recorded in the last session.

Ahsan Mehanti, an analyst at Arif Habib Corp, said, stocks closed lower on investor concerns over the economic impact of flood losses and a falling rupee.

“A slump in global crude oil prices, surging power tariff, and speculations over delays in ADB emergency loan approval and no financial assistance from friendly nations as yet hit the morale,” he added.

The KSE-30 index also fell 36.42 points or 0.23 percent to 15,648.45 points compared with 15,684.87 points recorded in the last session.

Traded shares decreased by 40 million shares to 219.351 million shares from 259.979 million shares. The trading value dropped to Rs8.892 billion from Rs10.111 billion. Market capital narrowed to Rs6.854 trillion from Rs6.885 trillion. Out of 315 companies active in the session, 108 move higher, 188 lower, and 19 ended unchanged.

Topline Securities, said the index swung between an intraday high of 145 points and low of -169 points, to finally close at 41,733 level (down by -0.09 percent).

Major contribution to the index came from TRG, COLG, ENGRO, HUBC, and LOTCHEM, as they cumulatively contributed 125 points to the index, on the flip side MEBL, HBL, POL, PAKT, and BAHL dented the index by 112 points.

The highest increase was recorded in shares prices of Bata (Pakistan), which surged Rs150 to Rs2,200 per share, followed by Colgate Palmolive, up by Rs122.70 to Rs2,140 per share.

Rafhan Maize being the worst loser fell Rs250 to Rs9,750 per share, followed by Sapphire Fiber, down Rs70 to Rs931 per share.

Arif Habib Ltd, in its post-session analysis report, said the market was under pressure throughout the day as participation remained inconsistent.

“The PSX opened on a positive zone but traded in tight range equally during both the sessions,” the brokerage said.

The report further said a devaluing rupee and political and economic uncertainty kept the investors on the sidelines.

“Volumes remained decent although 3rd tier stocks remained in the limelight,” it reported.

Sectors contributing to the performance included banks (-81.3 points), E&Ps (-27.3 points), tobacco (-18.4 points), cement (-16.7 points), and investment banks (-10.0 points).

JS Research said the market remained range bound today mainly due to lack of positive triggers. “Going forward, we recommend investors to adopt a buy-on-dips strategy in the banking, E&P and textile sectors,” the brokerage said.

TRG Pak Ltd was the highest traded stock with 27.566 million shares. It increased Rs6.67 to Rs116.19 per share. It was followed by Hascol Petrol with 26.089 million shares that closed higher by 50 paisas to Rs6.92 per share.

Other stocks that added to the turnover significantly included WorldCall Telecom, K-Electric Ltd, Kot Addu Power, Hum Network, TPL Properties, Bank Al-Falah, Lotte Chemical, and Telecard Limited. Turnover in the future contracts decreased to 62.830 million shares from 77.729 million shares.