RECORDER REPORT
KARACHI: Pakistan Stock Exchange witnessed another bearish session due to a selling spree on the first day of the fresh trading week Monday. The benchmark KSE-100 index declined by 290.89 points and closed at the level of 48,680.16 points.
Local investors opted to offload their holdings while foreign investors also sold out shares worth $3.7 million.
Trading activity also remained low as daily trading volumes on the ready counter decreased to 237.971 million shares as compared to 353.390 million shares traded Friday. The market capitalization declined by Rs 52 billion to Rs 9.595 trillion. Out of total 389 active scrips, 252 closed in negative, 118 in positive while the value of 19 stocks remained unchanged.
Bank of Punjab was the volume leader with 26.599 million shares. However, it lost Rs 0.64 to close at Rs 17.61 followed by Aisha Steel Mill that decreased by Rs 0.24 to close 26.78 with 21.604 million shares. K-Electric closed at Rs 8.53, down Rs 0.15 with 16.963 million shares.
Hinopak Motor and Murree Brewery were the top gainers with Rs 51.83 and Rs 16.12, respectively to close at Rs 1,650.00 and Rs 807.00. Wyeth Pak and Unilever Foods were the top losers with Rs 142.12 and Rs 50.00, respectively to close at Rs 2,935.84 and Rs 6,050.00.
Arhum Ghous at JS Global Capital said that another bleak session was witnessed at the local bourse as the benchmark KSE-100 index traded between an intraday high of plus 78 points and intraday low of minus 338 points, where it closed at 48,680 level (down 291 points). E&P sector lost value to close in the red zone on the back of international oil prices falling further towards $50.48/barrel, pressured by uncertainty over whether an OPEC-led production cut will be extended beyond June. POL (down 1.86 percent) and PPL (-1.32 percent) were the major laggard of the aforementioned sector. Overall negative sentiments were witnessed in the banking sector as sector heavy weights lost value to close in the red zone. MCB (down 0.43 percent), and UBL (down 0.76 percent) were the major losers of the banking sector. PSMC (down 1.57 percent), in the automobile sector, lost value to close in the red zone on the back of news that the automobile company may roll back its expansion plan to invest $460 million if the government fails to respond to its request for incentives until April.
An analyst at Topline Securities roll-over week commenced in typical fashion, with the KSE-100 index retracing 291 points/0.6 percent. Panama case jitters resurfaced as the media, over the weekend, stirred up “likely” dates of the verdict’s announcement. Oil majors PSO (down 2.0 percent), PPL (down 1.3 percent), POL (down 1.9 percent) and MARI (down 2.5 percent), eroded 72 points as uncertainty over the effectiveness of extending OPEC deal in wake of US and Russian resilience exerted pressure on oil prices (OPEC technical group to review market in April). Profit taking continued in Pharma heavyweight SEARL (down 2.9 percent) after adjustment for dividend (20 percent) and bonus (10 percent) on Friday. UBL (down 0.8 percent) announced the appointment of Ms Simi Kamil as President and CEO w.e.f. June 01, 2017.
