Volatility in international equities on Monday kept bears in hold of investor sentiments at Pakistan Stock Exchange (PSX) which has officially started trading as the country's only integrated bourse. The week's first session saw KSE-100 index tumbling by 0.66 percent or 215 points or to close at 32,320. Starting from the Friday's 32,535, the index initially moved northward but was soon dragged down by what analysts believed selling pressure.
Foreign investors, however, ended the day on a positive note to have made net buying of $1.37 million. "Stocks closed bearish amid thin trade after major fall in global equities on concerns over China," viewed Ahsan Mehanti of Arif Habib Corp. Weak earnings outlook for the blue-chip stocks impacted the sentiments, the analyst added.
Institutional support remained in cement stocks likely to gain from China-Pakistan Economic Corridor (CPEC) projects. Falling WTI crude prices below $33, political instability and foreign outflows at PSX, Mehanti said, played as catalyst in the day's bearish close.
Topline analyst Muhammad Rizwan also attributed the bearish trend to negative regional markets, particularly, China which shed five percent. "That coupled with weak international oil prices which hurt the local market sentiments," he said. Traded volume dipped to 86.48 million shares depreciating to Rs 5.24 billion compared to the previous Rs 7.20 billion. Total 318 scrips changed hands of which 74 surged, 222 declined and 22 remained unchanged in value. Market capital was no exception and contracted to Rs 6.83 trillion compared to Rs 6.88 trillion of last session.
K-Electric led volumes with 6.7 million share trading. The power utility inched down to Rs 7.30 at close. Other best performing issues were TRG Pakistan, Bank of Punjab, Pak International Bulk Terminal, Ghand Nissan, Southern Electric, Pak Elektron, SSGC, Amtex Limited and Maple Leaf Cement. Trade in futures contracts slid to 12.37 million as against 14.5 million of Friday last week. Automobile stocks were seen in the limelight because of what analysts said Pakistan Automobile Manufacturers Association's announcement of sales figures. Also, investors remained interested in selected cement stocks like DGKC and MLCF which, respectively, rose by 0.9 and 2.6 percent.
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