Volumes hit seven-month low

Despite foreign buying, Pakistan Stock Exchange (PSX) remained under heavy pressure due to investor concerns over various issues. Monday saw the lowest traded volumes since July 4, 2016. The benchmark KSE-100 index declined by 536.03 points to close below the 49,000 psychological level at 48,655.72 points.
Heavy selling was seen from local investors and institutions, however foreign investors emerged net buyers of shares worth $3.4 million. Trading activity also remained very thin as daily trading volumes on the ready counter decreased by 27 percent to 133.042 million shares as compared to 182.738 million shares traded last Friday. The market capitalisation declined by Rs 104 billion to Rs 9.593 trillion. Out of total 397 active scrips, 296 closed in negative, only 82 in positive while the value of 19 stocks remained unchanged.
Aisha Steel Mill was the volume leader with 10.625 million shares. It gained Rs 0.74 to close at Rs 22.74 followed by Pak Refinery that declined by Rs 3.14 to close at Rs 59.73 with 9.988 million shares. Dost Steel lost Rs 0.04 to close at Rs 14.12 with 9.006 million shares. Unilever Foods and Rafhan Maize were the top gainers with Rs 287.36 and Rs 99.00, respectively to close at Rs 6,034.72 and Rs 7,899.00. Wyeth Pak and Sanofi-Aventis were the top losers with Rs 126.05 and Rs 110.30, respectively to close at Rs 2,394.98 and Rs 2,095.70.
Zeeshan Afzal at Insight Securities said that the lowest traded value in the last 6 months, concerns on Panama with expectations that a decision could go against the incumbent government kept investors at bay. Despite inflow in broker kitty on account of strategic sale of 40 percent PSX shares, prop books largely remained silent. Benchmark index dipped below the key psychological level of 49,000 with institutional support largely seem to be missing. High court decision of not granting stay order to importers of tiles and steels led to positivity on both the sectors.
An analyst at Topline Securities said that the KSE-100 shed 536 points or 1.1 percent amid lowest traded volumes since July 4, 2016, as investors and traders alike took to the sidelines opting for wait and see approach, on concerns over regulatory crackdown, broker defaults and verdict pending on panama case. International crude oil prices continued their decline, posting an overnight low of $49.7, which led oil majors POL (down 4.1 percent), OGDC (down 2.3 percent), PPL (down 2.0 percent) and PSO (down 1.6 percent) to erode 126 points from the index. Steel sector witnessed renewed interest on the back of new flows of LHC declining to grant stay order in favour of steel importers; consequently ISL (up 2.9 percent) and ASL (up 3.6 percent) managed to close in the green.