Market watch: Stocks continue to bleed as investors opt for caution

Benchmark KSE 100-share Index falls 237.95 points

KARACHI: Stocks endured another tough day as the benchmark-100 index fell close to the 40,500-point mark, marking the fourth successive finish in the red with political uncertainty taking centre stage yet again.

At close on Wednesday, the Pakistan Stock Exchange’s benchmark KSE 100-share Index finished with a decline of 0.58% or 237.95 points to end at 40,526.81.



According to Global Research, participants were partially driven by results announcements, but political uncertainty was as much to blame with planned protests by the opposition keeping investors jittery.

“PIOC (+2.74%) and MTL (+1.76%) supported the index by 12 points cumulatively on account of delivering above expected results while HUBC (-2.04%) dragged the index by -33.08s owing to lower than anticipated earnings,” it stated.

“During mid-day trading, news reports surfaced regarding EFERT (+0.54%) being granted a stay order against the collection of GIDC, allowing the scrip to hit an intra-day high of Rs66.31/sh.

“This decision also allowed FFC (+1.93%) to garner investor attention and hit an intra-day high of Rs108.24 over possibility of discontinuation of GIDC payments,” the report added.

“Later on, however, both stocks lost steam as the market believes that this decision will likely be challenged by the government, as GIDC comprises a significant portion of the country’s tax net.

“Oil stocks also came under pressure with OGDC (-1.79%), POL (-1.32%) and PPL (-1.32%) eroding 60pts as international oil prices dipped below $50/bbl.

“HBL (-1.63%) emerged as the day’s biggest loser, likely due to institutional and foreign selling,” said the report.

Trade volumes fell to 347 million shares compared with Tuesday’s tally of 368 million.



Shares of 430 companies were traded. At the end of the day, 151 stocks closed higher, 262 declined while 17 remained unchanged. The value of shares traded during the day was Rs13.1 billion.

K-Electric Limited was the volume leader with 59.9 million shares, gaining Rs0.01 to finish at Rs9.20. It was followed by Bank of Punjab with 41 million shares, losing Rs0.38 to close at Rs17.26 and Dost Steel (R) with 27.4 million shares, losing Rs0.08 to close at Rs3.45.

Foreign institutional investors were net sellers of Rs103 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, October 27^th, 2016.

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