Weak investor sentiments drive stocks lower by 182 pointsArchive
KARACHI: The stock market went into further correction on Wednesday as Pakistan Stock Exchange’s (PSX) benchmark 100-share index stayed down and eventually closed lower by 182 points, or 0.46 per cent, at 39,810.
After a slow and sluggish start into the green, the KSE-100 index turned red and gradually slipped away to touch an intra-day low of 39,772.7 points.
Investor sentiments were weak amid lack of triggers. Some market participants even felt that the market looked fairly valued at the 40,000-point mark. Volume of traded shares decreased to 350 million from 424m a day ago while trading value fell to Rs11.4 billion from Rs13.3bn.
Murree Brewery (MUREB) hit the ‘upper circuit’ for the seventh session in a row on the back of the 1,500pc bonus issue declared by the company.
Investor interest was seen in the automobile sector on the back of a depreciating yen. Pak Suzuki (PSMC) and Honda Atlas (HCAR) were top performers as they gained to close on their upper circuits.
Overnight decline in crude oil prices to around $46 a barrel kept the oil and gas sector in check. The Oil and Gas Development Company (OGDC; -0.60pc), Pakistan State Oil (PSO; -0.91pc), Hascol Petroleum (HASCOL; -1.16pc), Mari Petroleum (MARI; -0.89pc), Byco Petroleum (BYCO; -2.40pc), Pakistan Petroleum (PPL; -0.09pc) and Pakistan Oilfields (POL; -0.32pc) remained in the red.
Fertilisers, cements and power took a major hit today on the back of deteriorating sector outlook while banks followed suit amid dearth of positive triggers, said analysts at Intermarket Securities.
Profit-taking was witnessed in Habib Bank (HBL, -1.58pc), which took away 44 points from the index. Hub Power Company (HUBC; -1.15pc), Lucky Cement (LUCK; -0.62pc), MCB Bank (MCB; -0.71pc) and Kot Addu Power Company (KAPCO; -1.49pc) dented the index by 55 points.
Analyst Ahsan Mehanti commented that stocks closed bearish amid consolidation after major earnings announcements at the PSX. Speculations remained in second- and third-tier scrips on strong valuations. “Dismal payouts, falling global crude prices and rising circular debt concerns in the energy sector played a catalyst role in bearish close,” he said.
Published in Dawn September 1st, 2016