PSX down 5% in first trading week
KARACHI: Pakistan Stocks Exchange (PSX) tumbled again on Friday with the KSE-100 index dropping below 31,000 psychological mark.
Indexes ended the first trading session on a positive note but wiped off all gains and everything went on sale in the latter half. PSX slumped 5% in it’s first week as Chinese stocks entered bear market and crude oil plunged below $30.
Market sentiments were hit by rumours revolving around FIA investigations. The KSE-100 index crumbled 439.53 points to end the week at 31,001.49 falling from high of 31,637.22 (+196.20pts). KMI 30 crashed by 710.61 points to 52,835.14 with only four companies, Millat Tractor Limited (MTL +1.24%), Nishat Mills Limited (NML +0.86%), ICI Pakistan Limited (ICI +0.61%) and Maple Leaf Cement Factory Limited (MLCF +0.32%), ending positive. KMI 30 touched a high of 53,972.80 (+427.05 points) on Friday. KSE All Share swung between +135.51 points and -367.67 points to settle down 264.42 points at 21,657.54.
Crude oil trading below $30 coupled with the possibility of Iran adding to the global oil glut wreaked havoc across the oil sector. Oil and Gas Development Company (OGDC -1.39%) sunk below Rs 100 to close at Rs 99.20 while Pakistan Oilfields Limited (POL -5.00%) shrunk to under Rs 200 and settled at the lower cap of Rs 198.57.
Pakistan Petroleum Limited (PPL -4.45%) ended 6year lows of Rs 103.60. Sui Southern Gas Company (SSGC -5.00%), Sui Northern Gas Pipeline Limited (SNGP -4.98%), Attock Petroleum Limited (APL -4.72%) and Burshane LPG (Pakistan) Limited (BPL -4.63%) all chipped off more than 4%.
The market volumes contracted to 137.561 million as the total value traded depreciated 29% to Rs 6.91 billion. TRG Pakistan Limited (TRG -4.98%) helped the technology and communications sector reach on top of the volume chart.
The cement sector was next. Only Pakcem Limited (PAKCEM +0.52%) and Maple Leaf Cement Factory Limited (MLCF +0.32%) managed to close in green on a day when the highest market cap company Lucky Cement Limited (LUCK) lost 0.43%, Bestway Cement Limited (BWCL) was down 1.11% and Dera Ghazi Khan Cement Company Limited (DGKC) fell 0.25%.
The commercial bank sector followed. The bloodshed sector saw major players MCB Bank Limited (MCB) crumble 1.50%, Habib Bank Limited (HBL) and United Bank Limited (UBL) down 1.86% and 2.19%.
News of contract with Qatar for the import of Liquefied Natural Gas (LNG) deal could not give the fertiliser sector any boost. Foreigners were net sellers of $2.08 million in the sector. Only Fatima Fertiliser Company Limited (FATIMA) rose a minor 0.12% while Dawood Hercules Corporation Limited (DAWH) shed 3.06%, Engro Corporation Limited (ENGRO) was down 1.28% and Engro Fertiliser Limited (EFERT) fell 1.07%.
Foreigners ended the week as net sellers of $4.32 million. Although local institutions demonstrated healthy buying but this was still not enough to support the market.