PHOTO: FILE
KARACHI: The stock market fell on Monday and overall trading volumes also took a hit as uncertainty over the domestic political front haunted investors ahead of much-awaited verdict on the Panama Papers case.
At close, the Pakistan Stock Exchange's benchmark KSE 100-share Index recorded a fall of 290.89 points or 0.59% at 48,680.16.
According to Elixir Securities' analyst Faisal Bilwani, equities closed first day of the week lower with volumes failing to pick up amid refusal of participants to engage in any new adventure until clarity on domestic politics.
KSE-100 drops slightly as it struggles for direction
"Stocks opened slightly positive, switched gears to a steady and constant slip into the red as sellers found little interest on the board with major investors staying on the sidelines after weekend media reports speculating that the much-awaited verdict of the Panama case is only days away," he said.
With institutions, including foreigners, mostly showing no interest, retail investors led the activity with small-cap speculative plays topping the volumes chart.
"In the absence of major triggers and quarterly earnings still a few weeks away, domestic politics will continue to remain a drag till clarity post-Panama verdict announcement," he added.
KSE-100 snaps losing streak, gains 120 points
According to JS Research, another bleak session was witnessed at the local bourse.
"E&P (exploration and production) sector lost value to close in the red zone on the back of international oil prices falling further towards $50.48 per barrel, pressured by uncertainty over whether an OPEC-led production cut will be extended beyond June," said analyst Arhum Ghous.
"Overall, negative sentiments were witnessed in the banking sector as sector heavyweights lost value to close in the red zone. MCB (-0.43%) and UBL (-0.76%) were major losers of the sector."
Pak Suzuki Motor Company (-1.57%), in the automobile sector, lost value to close lower following news that the automobile company may roll back its $460 million expansion plan if the government fails to respond to its request for incentives until April.
Index gains in final hour to end marginally positive
Overall, trading volumes fell to 237.97 million shares compared with Friday's tally of 353 million.
Shares of 389 companies were traded. At the end of the day, 118 stocks closed higher, 252 declined while 19 remained unchanged. The value of shares traded during the day was Rs10.44 billion.
The Bank of Punjab was the volume leader with 26.6 million shares, losing Rs0.64 to close at Rs17.61. It was followed by Aisha Steel Mills with 21.6 million shares, losing Rs0.24 to close at Rs26.78 and K-Electric with 16.9 million shares, losing Rs0.15 to close at Rs8.53.
Foreign institutional investors were net sellers of Rs388.5 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
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