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Stocks turned bearish Tuesday because of what equity analysts said pressure in select scrips. The KSE-100 index declined by 262 points or 0.80 percent to close at 32,444 points compared to Monday''s 32,706 points. Topline analysts said the index snapped its 11-session winning streak due to downtrend in regional markets as a result of uncertain global oil prices.
"Pakistan stocks closed bearish amid pressure in select scrips across the board after major sell-off in global equities," viewed Ahsan Mehanti, a director at Arif Habib Corp. The analyst said strong financial results in cement and fertiliser sectors failed to support falling stocks in the global markets rout. "Concerns for surging circular debt in the energy sector and falling exports played a catalyst role for the bearish close in the earnings results season at PSX," he said.
The day saw trading volume depleting from 152 million to 148 million which valued down to Rs 7.77 billion. Of the total 325, only 89 could appreciate while 225 depreciated and that of 11 stayed unchanged. The market cap contracted to Rs 6.87 trillion as foreign investors remained jittery to have sold net portfolios of $9.85 million. PIA led trades and rose to Rs 8.60 at close apparently because of successful negotiations between the government and agitating employees of national flag-carrier. Other best performing stocks included JSCL, Pace Pakistan, SNGPL, NBP, Fauji Cement, TRG Pakistan, Engro Fertiliser, DG Khan Cement and K-Electric.
Trade in futures contracts grew to 21 million from the previous 19 million. MCB Bank, declaring Rs 22.4 earning per share for 2015, declined 1.2 percent because of what analysts said announcing financials "below market expectations". "Banking sector as a whole experienced a sell-off today due to which BKTi index (comprising of banking stocks) declined 1 percent," Topline analysts said. Attock Petroleum and National Refinery added 0.4 and 0.2 percent on the back of releasing 2QFY16 earnings.

Copyright Business Recorder, 2016

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