Stocks lose 76 points amid lack of triggers
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KARACHI: Stocks tumbled for the second day with the KSE-100 index down 76.11 points (0.24 per cent) and close at 52-week low at 31,568.12 points.
For the ongoing month, the 100 index is down 6.62pc month-to-date staging its worst monthly performance in CY19. The investor displayed no risk appetite and decided to stick to safer fixed income securities, despite all-time low valuations of stocks.
The market in great need of confidence building measures as it struggles in the face of ongoing tussle between the government and the opposition and the concerns on economy ahead as implementation of the International Monetary Fund structural response. The overall depressing corporate results have also put a dampener on investor sentiments.
Analysts said that despite the government announcement pertaining to issuance of Pakistan Energy Sukuk-II amounting to Rs200 billion to curtail circular debt, independent power producers remained neutral to negative.
In the early trade, the index rose 40 points, but then took a steep down turn which landed it to intra-day low by 248 points. Selling was seen across the board with the cement sector failing to find a foothold and leading the volumes on the index as Cherat Cement, Pioneer, Fauji, Kohat and D.G Khan remained under selling pressure. Investors also took profit in banks which saw National Bank of Pakistan, Habib Bank Ltd (HBL) and United Bank Ltd finish in the red.
Volumes increased from 45.8 million shares to 51.3m shares (up 12pc day-on-day). Traded value also improved by 40pc to reach $13.2m as against $9.4m the previous day.
Stocks that contributed significantly to the volumes included Maple Leaf Cement Factory, TRG Pakistan, K-Electric, Fauji Cement (FCCL) and Pak Elektron, which formed 35pc of the total volumes.
National Clearing Company data showed resumption of foreign buying of equity worth $2.74m on Tuesday while mutual funds sold shares of $1.52m on likely redemptions.
Major laggards were Pak Tobacco was down 4.14pc, HBL 1.12pc, Pakistan Petroleum Ltd 1.22pc, Oil and Gas Development Company 0.99pc, Nestle Pakistan 4.69pc, Bank Al Habib Ltd 1.04pc and FCCL 4.88pc.
Published in Dawn, July 31st, 2019
