RECORDER REPORT
KARACHI: Karachi stocks turned bearish Tuesday because of what market analysts said declining global stocks and commodities.
The KSE-100 index slid to 34,309.76 from Monday’s 34,456.34, shedding 146.58 points or 0.43 percent.
“Stocks fell sharply at KSE after plunge in global stocks and commodities,” said Ahsan Mehanti of Arif Habib Corporation.
Ahmed Saeed Khan of JS Research said negativity prevailed in the day’s session where the benchmark index dipped to its lowest point of 334 points.
Foreign investment once again turned negative marking net selling of $ 6.78 million compared to Monday’s $ 1.27 million buying.
Trading turnover depleted to 249 million shares from the previous 353.5 million. Also, the value of stocks traded contracted to Rs 10.65 billion as against Rs 16.76 billion of last session.
Of the total 381 scrips traded, 191 gained, 174 lost and 16 stayed unchanged in prices. The market capital accumulated to Rs 7.436 trillion as against Rs 7.482 trillion. Dewan cement led volumes with 35.9 million trading turnover. The cement manufacturer appreciated to Rs 18.39 after opening the day at Rs 17.76.
Other best performing issues were TPL Trakker 17.5 million, Jahangir Siddiqui Company 16.4 million, TRG Pakistan 11.7 million, SNGPL 10.7 million, Fauji Fertilizer Bin Qasim 10.4 million, SSGC 8.8 million, Engro Fertilizer 7.6 million, Pak Elektron 5.4 million and Power Cement 5.3 million shares.
Futures trade also remained southward and ended at 30 million contracts.
Analyst Mehanti said upbeat CPI inflation data for Aug’15 and speculations ahead of the State Bank policy announcements later this month supported the leveraged stocks. This, he said, was despite investors’ concerns for dismal earnings announcements in the oil sector. “Likely hit on corporate earnings by OGRA announcement for increase in gas prices and rising political uncertainty played a catalyst role in bearish activity post major earning announcements at KSE,” said he. The oil sector witnessed pressure throughout the day because of dip in international crude oil prices, said Khan of JS Research.
“Moving forward, we expect volatility to continue,” the analyst said.
