Market watch: Stocks continue to tumble as regional markets struggle

Benchmark KSE-100 index falls 214.80 points


Our Correspondent January 11, 2016
Benchmark KSE-100 index falls 214.80 points. PHOTO: AFP/FILE

KARACHI: The stock market fell for the sixth trading day in a row as foreign investors continued to be net sellers, pulling out their investments.

The decline in confidence may have been triggered by worries over Chinese fundamentals, as the Shanghai Composite Index fell over 5%, taking the total value shed so far in the new year to 15%.

The Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share index fell 0.66% or 214.80 points to end at 32,320.05.



According to Elixir Securities, the turnover on the 100-share index hit an eight-week low as investors traded very cautiously in the absence of triggers and ongoing turmoil in regional and commodities markets.

“Stocks opened lower and continued to slide during the day led by financials and energy names on reported foreign selling.

“Index-heavy MCB Bank (-2.40%), Habib Bank (-1.10%), United Bank (-0.95%), Oil and Gas Development Company (-1.96%) and Pakistan Oilfields (-2.83%) all ended lower and cumulatively contributed half of the points to the index decline.”

Meanwhile, auto numbers released on Monday sparked some interest in the sector with Ghandhara Industries (+4.33%), Hinopak Motors (+4.37%) and Pak Suzuki Motor (+1.95%) all closing higher.

“Current dull trading pattern is expected to continue and the benchmark KSE-100 index will test 32,000 levels in the near term. Lower regional markets and unabated foreign selling are the main causes for concern, while ongoing investigation against a broker is also denting wider market sentiments.”

Topline Securities in its report stated regional markets, particularly China, were in the red. That, coupled with weak international oil prices, negatively affected the local market sentiments.

“Automobile stocks were in the limelight as the Pakistan Automobile Manufacturers Association (PAMA) announced the auto sales numbers. Pak Suzuki Motor Company gained 2% as it posted 3% month-on-month growth despite the year-end factor. Interest was also seen in Hinopak Motors and Ghandhara Industries on the back of improved truck sales, which pushed up their stocks by 4.4% and 4.3% respectively.”



Investors remained interested in selected cement stocks, like DG Khan Cement and Maple Leaf Cement, which gained 1.9% and 1.5%, respectively.

Trade volumes fell to 86 million shares compared with Friday’s tally of 111 million.

Shares of 318 companies were traded. At the end of the day, 74 stocks closed higher, 222 declined while 22 remained unchanged. The value of shares traded during the day was Rs5.2 billion.

K-Electric was the volume leader with 6.7 million shares losing Rs0.01 to finish at Rs7.30. It was followed by TRG Pakistan with 6.4 million shares losing Rs1.66 to close at Rs31.89 and The Bank of Punjab with 4.4 million shares losing Rs0.16 to close at Rs8.66.

Foreign institutional investors were net sellers of Rs138 million worth of shares during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, January 12th, 2016.

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