PSX sheds 71 points

Thursday, the first session of the new month, saw bears prevailing on Pakistan stocks market where KSE-100 index shed 71 points or 0.18 percent to close at 39,739 points. The equity analysts attribute the day's fall to a sharp decrease in international crudes. The benchmark index showed volatility in intraday trade and hit the session high and low of 39,900 points and 39,723 points.
The number of shares traded increased to 365 million valuing up to Rs 13.72 billion. Of the 444 scrips traded, 226 gained, 203 lost and 15 remained unchanged. The listed market capitalisation remained almost flat at Rs 8.0 trillion. The foreign portfolio investment stayed in the negative zone to mark net selling of $3.98 million. This was because of $4.51 million selling the offshore institutional investors made during the month's first session. While Overseas Pakistanis bought $536,427 portfolios, foreign individuals offloaded their positions to the tune of $5,483.
K-Electric remained the most-traded issue with 27 million share trading. The power utility, which's majority shares are up for sale, depreciated to Rs 9.12 at the end of day's trade. Other well performers included Byco Petroleum, Aisha Steel, Dewan Cement, Descon Oxychem, Ghani Automobile, Engro Foods, TRG Pakistan, Treet Corporation and Ist Capital Sec.
Trade on futures market rose to 22.6 million from the previous 18.7 million contracts. "Stocks closed lower amid pressure in oil stocks after sharp fall in global crude prices," said Ahsan Mehanti at Arif Habib Corp. Institutional support remained in auto stocks amid falling yen, the analyst said. "Weak global equities, foreign outflows and concerns for political uncertainty played a catalyst role in bearish close," said Mehanti.
Hammad Aman, Manager Equity Sales at Topline Securities, said the declining global crudes shaved 0.3 and 1.3 percent value of POL and PPL. Rumours of foreign selling made Engro Foods one of the most-traded stocks with 12.7 million trading turnover, highest in more than 16 months. The issue, however, landed in red with 2.2 percent loss. KAPCO announced Rs 10.31 earning per share (EPS) and Rs 9 cash dividend. In cement sector, Lucky declared Rs 45.99 EPS along with a cash dividend of Rs 10. "Despite (the) result being slightly above-expectations (the) stock declined by two percent," Aman said.