PHOTO: AFP
The KSE-100 index failed to build on Wednesday's gains and after a brief stay in the positive territory, the index began to descend.
The political turmoil in the country dampened investor sentiments and pushed the index down by 1,053 points. Later, it made a slight recovery, but failed to sustain the momentum and slumped further, hitting an intra-day low of 43,044.12 points.
At close, the benchmark KSE 100-share Index recorded a decrease of 1,050.90 points or 2.38% at 43,136.06.
According to Elixir Securities, Pakistan equities plummeted again with the benchmark index finishing near 43,100, down over 1,000 points, the lowest closing in over eight months.
"The day started on a weaker note with the wider market failing to build on previous day's momentum due to anxiety on the political front," stated Elixir.
Market watch: KSE-100 snaps three-day losing streak, ends in the green
Sentiments were primarily dented on news that the country's apex anti-corruption organisation had summoned the sacked prime minister Nawaz Sharif and his sons for questioning related to Panama Papers allegations.
Notable blue-chips across major sectors along with sideboard names received a hammering on reported institutional and prop-book selling.
Meanwhile, quarterly earnings announced during the day by various companies also failed to have any impact on activity in the wider market. Hub Power (-2.2%) and Bank Alfalah (-2.5%) both closed lower after result announcements.
"(We) see the market to trade volatile and choppy on Friday and investors may stay cautious and be selective amid prevailing political noise," the report added.
JS Global analyst Maaz Mulla said negativity prevailed in the market during the day as the index lost 1,051 points to close at 43,136.
"Negative sentiments were likely the result of political turbulence, coming from the recent announcement about NAB's Friday summon for former prime minister and his two sons," Mulla said.
The market was lacklustre with total volumes of 167 million shares. Allied Bank (-0.60%) announced its results for 1H2017 with earnings per share (EPS) of Rs5.75 and dividend per share of Rs1.75, taking 1H2017 pay-out to Rs3.5.
Stocks receive a hammering as political tensions boil over
Hubco (-2.19%) also declared its results for FY17. Its EPS stood at Rs9.24 and dividend per share at Rs2.50 for the period.
International Industries (-2.68%) from the steel sector reported financial results for FY17, where the company posted an EPS of Rs22.91 and final cash dividend of Rs2 per share.
Commercial bank heavyweights Habib Bank (-3.18%), MCB Bank (-2.59%) and United Bank (-1.86%) were among major laggards of the KSE-100 index.
Pakistan Petroleum (-2.24%), Pakistan Oilfields (-4.83%) and Oil and Gas Development Company (-3.17%) from the exploration and production sector cumulatively contributed -143 points to the index.
International Steels (-3.65%), International Industries (-2.68%) and Aisha Steel Mills (-4.91%) from the steel sector closed in the red zone.
"We believe the political scenario has prolonged and is expected to continue to affect the stock market. Moving forward, we recommend investors to stay cautious and avoid short-term positions," Mulla added.
KSE-100 falls 3.4% with marked decline in volumes
Overall, trading volumes fell to 167 million shares compared with Wednesday's tally of 187 million.
Shares of 367 companies were traded. At the end of the day, 43 stocks closed higher, 314 declined while 10 remained unchanged. The value of shares traded during the day was Rs8.8 billion.
Azgard Nine was the volume leader with 11.4 million shares, losing Rs0.61 to close at Rs15.26. It was followed by The Bank of Punjab with 11 million shares, losing Rs0.30 to close at Rs10.29 and TRG Pakistan with 9.6 million shares, losing Rs1.94 to close at Rs41.59.
Foreign institutional investors were net sellers of Rs342 million during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.
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