Bears continue to rule, PSX closes in red
KARACHI: The Pakistan Stock Exchange (PSX) on Tuesday ended in red as bears rule continued for the 10th trading session. The market experienced heavy selling early morning and the benchmark KSE-100 dropped down 314.83 points to 32,005.22.
Investors booked profits after oil prices plumbed to 12-year-low and regional markets remained volatile. News of court issuing arrest orders of 12 brokers and Directors of Employees Old-Age Benefit Institution (EOBI) dented the investor’s confidence.
The indexes rebounded later in the day with KSE-100 index ending down 54.40 points at 32,265.65. KMI 30, after plunging down 620.46 points, regained momentum and closed the day losing 86.52 points at 55,116.77. KSE All Share shred 64.55 points to settle at 22,471.33. There were only 81 advancers on Tuesday in contrast to 205 decliners.
Market turnover escalated from last session’s low of 86.486 million to 127.41 million. Cement Sector was seen in the lead. The ongoing discussions over the China Pakistan Economic Corridor (CPEC) among political wings of the country induced selling in early trading hours but optimist investors were seen accumulating cement stocks in the later hours. Cherat Cement Limited (CHCC +5.00%) hit the upper lock. The largest cement maker with over 17% market share, Bestway Cement Limited (BWCL) edged up 2.96%, highest market cap company Lucky Cement Limited (LUCK) gained 1.17% while Dera Ghazi Khan Cement (DGKC) and Maple Leaf Cement Factory (MLCF) were up 1.03% and 1.38
Crude oil dripped to new lows on Tuesday morning taking prices down around 16% since the start of the year. Prices are pulled down by a glut, deteriorating Chinese economy and strong dollar. While analysts cut down their forecast even lower traders decided to realise any profit on offer. Both Mari Petroleum Limited (MARI -4.80%) and Pakistan Oilfields Limited (POL -4.70%) collapsed to their lower locks intra-day. Oil and Gas Development Company (OGDC +0.04%) slipped to Rs 103.75 before closing at Rs 105.24.
Automobile sector caught investor eyes following release of half-year sales data. Ghandhara Industries Limited (GHNI +5.00%) banged the upper cap. Hinopak Motor Limited (HINO) appreciated 4.04% after buses and trucks segments posted a raise of 40% YoY in sales. Both Millat Tractor Limited (MTL -4.44%) and Al Ghazi Tractor Limited (AGTL -0.22%) depreciated after decline of 41% YoY in sales for first half of the fiscal year 2016. Delay in subsidiary announced in budgets by Punjab and Sindh governments impacted the sector adversely. AGTL reported a 48% decline in sales volume MoM while MTL MoM sales dipped 46%.
According to the figures released by the National Clearing Company of Pakistan Limited (NCCPL), foreign investors were net buyers of $3.85 million while local mutual funds off loaded stocks worth $1.65 million.