Benchmark
KSE-100 index
falls 332.50 points.
Foreign investors continued to offload, but news of Habib Bank Limited’s (HBL) New York branch and its non-compliance issues with US regulators dented sentiment as well. Tumbling oil prices finished off whatever interest investors had over attractive valuations.
At close on Friday, the Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 1.00% or 332.50 points to end at 32,777.04.
Elixir Securities in its report said Pakistan equities halted their two-day winning streak and dropped 1% after sentiments of wider market were hit hard on news of HBL (-5%) New York branch’s non-compliance of anti-money laundering laws by US regulators.
“HBL with highest weight of nearly 8.5% on KSE-100 index traded 21% of KSE-100 turnover and closed at lower price limit. Following HBL, most sectors including cements and fertilisers traded lacklustre and closed lower with oil and energy mostly seeing profit-booking.
“Moreover, small and mid-caps also struggled and failed to find direction ahead of the weekend.”
Meanwhile, JS Global analyst Arhum Ghous said the index fell after initial gains as HBL plummeted by 5% towards the end of the day.
“The bank tanked on news that New York’s banking regulator ordered the HBL’s New York branch to hire an outside monitor to oversee anti-money laundering controls, also limiting its dollar clearing activities.
“Major index movers apart from HBL were OGDC (-1.03%) and Pak Petroleum (-1.75%) which lost value on the back of declining crude prices with WTI touching $34.50 per barrel.
“Mari Petroleum (+4.02%) gained on notification that its request for conversion of its well head pricing to 2012 petroleum policy has been approved.
“Lucky Cement (-0.88%) declined over news of the South African trade commission recommending duties on imports from Pakistan.”
Trade volumes fell to 114 million shares compared with Thursday’s tally of 142 million shares.
Shares of 325 companies were traded on Friday. At the end of the day, 100 stocks closed higher, 195 declined while 30 remained unchanged. The value of shares traded during the day was Rs9.2 billion.
HBL was the volume leader with 7.8 million shares, losing Rs10.96 to finish at Rs208.32. It was followed by Bank of Punjab with 6.3 million shares, losing Rs0.26 to close at Rs9.13 and Pak Int. Bulk Terminal with 5.9 million shares, gaining Rs0.55 to close at Rs29.25.
Foreign institutional investors were net sellers of Rs518 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, December 19th, 2015.
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