KARACHI, Dec 11: Stocks ended lower on Tuesday on foreign selling amid lack of any positive news flow and dealers said investors were cautious ahead of the monetary policy announcement.
Foreign investors sold shares worth a net $8.2 million on Tuesday, compared with a net inflow of $1.12m the previous trading session, bringing the total for the month to an outflow of $6.21m.
The KSE 100-share index ended 0.51 per cent, or 85.85 points, lower to 16,701.69 points. Turnover again decreased to 127 million shares, compared with 189.1m shares traded on Monday. Trading value fell by Rs1.4 billion to Rs3.48 billion from the previous trading session’s value of Rs4.06bn.
Market capitalisation eased to Rs4.19 trillion from Rs4.21tr.
“Stocks closed bearish amid thin trade. Profit-taking continued in scrips across the board as investors await the SBP policy rate announcement on Dec 14,” said Ahsan Mehanti from Arif Habib Ltd.
Analysts expect a cut of at least 50 basis points to 9.5 per cent but economic concerns remain as the rupee made a fresh record low of Rs97.30 on Tuesday.
It made an all-time low despite an increase in remittances. The pressure on the rupee is expected to remain due to the country’s depleting foreign exchange reserves.
“Declining value of the rupee against US dollar also affected market sentiments,” said Mohammad Rizwan, senior manager equity sales at Topline Securities Ltd.
There is also concern that Pakistan may turn to the IMF for another loan programme.
According to reports, International Monetary Fund officials are expected to come to Islamabad later this month to hold talks on a new economic stabilisation programme.
IMF in its latest report said that Pakistan’s central bank’s monetary policy should be more focused to contain inflation and external risks.
Banks bought shares worth a net $1.76m but individuals were the major buyers with equity worth a net $4.17m.
The biggest gainer was Unilever Pakistan which rose Rs96.83 to close at Rs9,897.83, followed by Sanofi-Aventis Pakistan which ended Rs16 higher at Rs368.
Bata Pakistan witnessed the biggest loss for the second consecutive day as it shed Rs80 to Rs1,530 followed by Nestle Pakistan, which shed Rs40 to close at Rs4,800.
The KSE-30 index ended 0.43pc, or 58.05 points, lower at 13,542.02 and out of the 369 companies traded, the value of just 95 increased, 254 decreased while 20 remained unchanged.
“Trading volume squeezed to mid cap stock which includes JSCL, MLCF and SNGP. No outcome of the ECC meeting dragged Engro Corporation in the negative zone,” said Rizwan from Topline.
Among the 10-top traded stocks, Jahangir Siddiqui Co Ltd ended lower by 57 paisa at Rs17.26 on turnover of 13.89m shares, Maple Leaf Cement fell 12 paisa to Rs13.79 on volume of 8.86m shares and Sui North Gas closed Rs1.84 lower at Rs23.41 on 7.79m shares.
Fauji Cement ended 13 paisa lower at Rs6.45 on 7.21m shares, Engro Foods rose 98 paisa to Rs93.55 on 5.59m shares, and Lotte PakPTA fell 29 paisa to Rs7.65 on 5.24m shares.
Engro Corporation shed Rs2.91 to close at Rs93.49, Byco Petroleum fell 41 paisa to Rs10.77 on 4.12m shares and Azgard Nine ended 21 paisa lower at Rs8.42 on 3.41m shares.
Nishat Chunnian gained 28 paisa to Rs33.79 on nearly 3 million shares.