PSX plummets over prevailing political noise

Author: Staff Report

Karachi: Pakistan equities Thursday turned back south with benchmark KSE-100 Index plummeting to 38,127 level over prevailing political noise. The benchmark KSE 100 index shed 596 points to close at 38223.55 level.

Market opened lower as stocks carried bearish momentum from the word go and all major sectors including Oils, Financials, Cements and Steels remained in red throughout the trading session on extremely dull volumes. “Stocks fell sharply lower amid concerns for political uncertainty. Panic selling witnessed in scrips across the board after major fall in rupee, dismal data on trade deficit for Jul-Nov’17 and weak global crude oil prices played a catalyst role in bearish activity at PSX,” said Ahsan Mehanti, senior analyst. The market exhibited negative behaviour from the start and remained in red throughout the day, as National Assembly Speaker Ayaz Sadiq’s (affiliated with ruling party Pakistan Muslim League N) statement that he feared that assemblies might not complete their term, and a greater plan was in the offing, unsettled the already nervous investors, analyst at Topline Securities commented.

Blue chips to the likes of Hub Power HUBC PA -2.6%, MCB Bank MCB PA -1.6%, Pakistan State Oil PSO -3.3% and Engro Corp ENGRO PA -1.7% traded lower and dented KSE100 Index while DG Khan Cement DGKC PA -5%, International Steels Limited ISL PA -4.9% and Pak Electron PAEL PA -5% were among the main culprits that kept sentiments down as they slid sharply towards their lower limits during the day.

Participation decreased as volumes were down 21% d/d while traded value shed 24%.

Top index point decliners were HUBC (-2.6%), DGKC (-5%), MCB (-1.6%), PSO (-3.3%) and ENGRO (-1.7%) withheld 150pts while stocks including ABOT (+3 1%) INDU (+1 7%) COLG (+2 4%) SHFA (+3 9%) and CSAP (+5%) added 32 points. Stocks including ABOT (+3.1%), INDU (+1.7%), COLG (+2.4%), SHFA (+3.9%) & CSAP (+5%), added 32 points.

On the sector front; Cement, Commercial Banks, and E&P sector cumulatively took away 248 pts. On the flip side Chemical and miscellaneous sectors added a total of 10 points. Analyst say that with key support lying around 37,500 level, expect benchmark Index to consolidate and trade in a 800-1000 points in the near-term.

Published in Daily Times, December 15th 2017.

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