PSX replicates regional peers – opens green, closes red
KARACHI: Pakistan Stock Exchange (PSX) shred off all gains at close of the session, replicating the trend of most regional markets. Stocks around the globe crumbled again, as fears escalated of an economic slowdown and global crude oil prices hitting lows of 2003.
Brent crude oil dropped below $28 while the US crude WTI headed down towards $26. Stock markets including Toronto Stock Exchange, The French CAC, The German Dax and The Shanghai Composite have entered the bear market.
Market Analysts define the bear market as a fall of 20% or more in multiple broad market indexes over a two-month period below its high point.
Currencies across the world have started to feel the heat too, Russian ruble hit new record low against dollar. There is no respite for investors locally as well where rumors cloud the market over FIA investigations. Foreigners remain consistent with selling.
The benchmarket KSE-100 index closed shedding 14.21 points at 30,751.80 falling from an intra-day high of 31,029.17 (+263.16 points). KMI 30 managed to end in green but was up only 15.76 points at 52,307.74 while KSE All Share settled with 3.75 points negative at 21,574.61.
The market volumes rose to 135.807 million from last sessions 106 million. Low cap stock TRG Pakistan Limited (TRG -4.99%) uplifted the technology and communications sector on top of the volume table. The cement sector was next with Maple Leaf Cement Factory (MLCF +0.88%) in lead. Volume of 6.776million was observed in the stock following Wednesday’s half yearly result announcement. Mixed sentiments were seen in the sector with Gharibwal Cement Limited (GWLC) cruising up 4.03% and Attock Cement Pakistan Limited (ACPL) edging up +1.71%. Both Lucky Cement Limited (LUCK -0.42%) and Dera Ghazi Khan Cement Company Limited (DGKC -1.59%) ended in red.
Oil sector witnessed a stable session tracing pattern of international crude oil prices. Pakistan Petroleum Limited (PPL) was up 1.91% while Oil and Gas Development Company (OGDC) and Mari Petroleum Limited (MARI) were down 0.31% and 1.08% respectively.
According to data released by Pakistan Bureau of Statistics, total textile exports have declined 14.46% despite the GSP+ scheme. Market analysts associate the fall to energy crisis in the country, high rates of taxation and tough competition from regional countries.
Big names of the industry have posted negative returns in past year with Nishat Mills Limited (NML -1.20%) sinking 26.9% and Nishat Chunian Limited (NCL +0.68%) falling 27.5%. Kohinoor Textile Mills Limited (KTML 4.24%) declared financial results for the half year ended December 31, 2015. The company announced second quarter earnings per share (EPS) of Rs 2.32, a substantial increase of 110% compared to fiscal year 2015’s second quarter EPS of Rs 1.10. Company half year sales escalated 22.14%, which along with 218% raise in other income resulted in a profit after taxation (PAT) of
Rs 948 million. PAT of quarter two was up 110.74% to Rs 568,956. The stock managed to touch upper circuit intra-day and settled gaining 4.24% at Rs 77.02 after announcement of interim cash dividend of Rs 1.50 and 15% bonus shares.