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KARACHI: Stocks extended losses on Tuesday with the KSE-100 index shedding another 93.22 points to close at 31,223.74.
The market opened on a negative note and tested the intra-day low at 30,942 points, representing a steep fall of 374 points.
“During the last trading hour the market recovered more than 250 points after news that Moody’s Investors Service assigned a provisional (P) Caa1 senior unsecured rating to the proposed US Dollar Trust Certificates to be issued by The Second Pakistan International Sukuk Company Limited, a special purpose vehicle established in Pakistan,” said analyst Arhum Ghous at JS Global.
“Late buying in Engro and PSO helped index recover early losses. Volumes declined to 160 million shares, while value increased to $108m,” commented Samar Iqbal, AVP Equity sales at Topline Securities.
Foreign investors turned net sellers on Tuesday in the considerable sum of $5.87m. They skid out of oil & gas to the tune of $2.2m and chemicals $3.6m but picked up stocks worth $1.6m in the cement sector.
Political worries sat on investors’ mind as they wondered over the outcome of PTI protest on Nov 30; the fear fanned further by the cancellation of Prime Minister Mian Nawaz Sharif’s speech scheduled for Monday evening.
Analyst Ahsan Mehanti at Arif Habib Corp observed that political uncertainty, dismal data on LSM growth at 1.86 per cent YoY July-Sept 2014 and impact on circular debt in energy sector for power tariff cut by Nepra played a catalyst role in bearish activity at KSE.
Cement sector remained in the spotlight with more than 20.9m shares traded, followed by chemical sector 19m shares and financial service sector at third place with 16m shares.
The cement sector witnessed buying in DGKC, MLCF, LPCL and PIOC with prices up by 0.72pc, 1.45pc, 0.55pc and 2.25pc. In the electricity sector HUBC, KEL, LPL plunged by 0.71pc, 0.13pc and 1.74pc.
Published in Dawn, November 26th, 2014
