RECORDER REPORT

KARACHI: Pakistan Stock Exchange remained under selling pressure before the announcement of federal budget for next fiscal year. The benchmark KSE-100 index declined by 232.14 points and closed at 52,636.87 points Friday.

Daily trading volumes increased to 431.773 million shares as compared to 408.887 million shares traded Thursday. The market capitalization declined by Rs 36 billion to Rs 10.409 trillion. Out of total 401 active scrips, 208 closed in negative, 189 in positive while the value of 4 stocks remained unchanged.

Power Cement (R) was the volume leader with 77.045 million shares. It gained Rs 0.39 to close at Rs 2.83 followed by Engro Polymer that increased by Rs 1.06 to close at Rs 33.11 with 25.491 million shares.

Nestle Pakistan and Colgate Palmolive were the top gainers with Rs 199.67 and Rs 82.00, respectively to close at Rs 10,199.67 and Rs 2,289.00. Wyeth Pak and Unilever Foods were the top losers with Rs 115.58 and Rs 83.00, respectively to close at Rs 2,536.83 and Rs 6,139.00.

Arhum Ghous at JS Global Capital said that the market started on a positive note, but very quickly stocks witnessed profit booking on account of which KSE-100 index closed at 52,637 level, down 0.44 percent. Many heavyweights from the banking sector including HBL (down 2.05 percent), MCB (down 1.83 percent) and UBL (down 1.06 percent) contributed to the negativity in the overall market. Oil companies also closed in the red zone on decline in international oil prices due to lower than expected output cuts by the OPEC producers. Prices of OGDC (down 1.48 percent), POL (down 2.10 percent) and PPL (down 1.61 percent) from the aforementioned sector suffered from the disappointing oil production cuts. Refinery sector flourished as opposed to the market, where ATRL (up 2.55 percent), PRL (up 1.42 percent) and NRL (up 0.75 percent) gained during the day. Profits were also booked in other sectors including Cement sector, where most stocks observed selling pressure. As a result, LUCK (down 0.94 percent), DGKC (down 0.76 percent) and others closed negative. Budget announcement had an unclear impact on the market, where further clarification on the effect of budget is expected to be observed in the market on the next trading day. End of roll-over week has put downward pressure on many stocks.

Ahsan Mehanti at Arif Habib Corporation said that the stocks closed bearish amid institutional profit-taking in oil, banking and auto stocks on pre-budget uncertainty and slump in global crude prices. Support was witnessed in cement, steel sector on record PSDP commitments in the federal budget. He said falling global crude prices, foreign outflows and concerns over missed economic targets in the federal budget 2017-8 played a catalytic role in bearish close.