PSX index stumbles as bulls lose control

Author: Staff Report

Bulls lost control as profit booking was witnessed at the Pakistan Stock Exchange (PSX) on Friday, where the index made an intraday low of 41,157 to close at 41,222 points levels or 1.4 percent. The index sheds 573.84 points to close at 41,221.75 points level.

Volume was recorded at 223 million shares, down 34 percent as compared to previous day.

Bank of Punjab (BOP) losing 4.88 percent from the banking sector led the volume with almost 21 million shares exchanging hands. On the news front, the country’s current account deficit increased by 43 percent to $17.994 billion in the fiscal year ended June 30, 2018 as compared to $12.621 billion in the preceding financial year. Investors opted to book profits in the cement sector after two straight sessions of positivity, where Pioneer Cement (PIOC) losing 2.89 percent, Fauji Cement Company (FCCL) losing 2.69 percent, DG Khan Cement losing 2.83 percent, Chitral cement losing losing 3.16 percent and Lucky Cement losing 2.14 percent closed in the red zone. Steel sector closed positive where Aisha Stell Mills (ASTL) gaining 3.26 percent and International Steel Mills (ISL) with 2.17 percent were the major movers of the sector.

Engro gaine 0.42 percent as it released its material information where the company informed PSX about its Proposed Transaction for sale of up to 36 percent of its stake in Elengy Terminal Pakistan (29 percent of total outstanding shares of ETPL). The transaction is expected to result in a one-time gain of Rs7/share on ENGRO’s income statement. An equity analyst Maaz Mulla expects the market to depict a similar trend and recommend investors to see any upside in the market as an opportunity to sell. Volume leaders were Bank of Punjab (BoP) with 20.9 million shares traded, Lotte Chemical with 18.9 million shares traded and K-Electric with 14.1 million shares traded.

The advance to decline ratio in the broader market remained in the favor of bears, total 350 scrips participated, 82 of them advanced, 244 declined while 24 scrips remained unchanged.

Published in Daily Times, July 21^st 2018.