Pakistan Stock Exchange (PSX) remained under pressure Tuesday. The benchmark KSE-100 index lost another 214.57 points to close at 48,757.67 points. Selling was seen from both local and foreign investors. Foreign investors sold out shares worth $6.7 million and withdrew their investment from the bourse.
Trading activity further reduced due to investors'' lack of interest as the daily trading volumes on the ready counter declined by 316.857 million shares as compared to 389.735 million shares traded Monday. The market capitalisation decreased by Rs 41 billion to Rs 9.727 trillion. Out of total 409 active scrips, 260 closed in negative, 139 in positive while the value of 10 stocks remained unchanged.
K-Electric was the volume leader with 32.904 million shares. It gained Rs 0.15 to close at Rs 10.40 followed by TRG Pak that lost Rs 0.37 to close at Rs 54.10 with 24.027 million shares. Japan Power declined by Re 1 to close at Rs 6.34 with 19.567 million shares.
Pak Tobacco and Millat Tractors were the top gainers with Rs 53.93 and Rs 51.76, respectively to close at Rs 1,214.18 and Rs 1,087.08. Rafhan Maize and Wyeth Pak were the top losers with Rs 299.97 and Rs 158.63, respectively to close at Rs 7,500.03 and Rs 4,106.00.
Nabeel Haroon at JS Global Capital said the market opened on a negative note as the index lost to make an intraday low of minus 623 points during the initial hours of the trade on the back of aggressive selling by investors. The selling was led by fear of strict action by SECP on compliance issues. Some recovery was later witnessed in the market as the index gained to make an intraday high of plus171 points. However, the recovery was short lived as the market again lost ground to close 215 points lower at 48,758 level. FFL (up 1.78 percent) gained on the back of material information disseminated in the market in which company announced that its UHT process machine and ancillary equipment has commenced operation following successful completion of its BMR. FFC (up 0.79 percent) gained as the fertilizer company announced its year end result for 2016. The major index movers were LUCK (down 2.0 percent), HBL (down1.05 percent) and MCB (down1.39 percent).
Ahsan Mehanti at Arif Habib Corporation said that the stocks closed lower amid pressure in global equities amid concerns over outcome of Trump executive orders. Late session support witnessed in oil stocks on likely surge in local POL prices, Pak rupee appreciation and speculations on financials. He said that dismal earning announcements in fertilizer sector and cautious activity amid regulatory oversight played a catalyst role in bearish close in the earnings season.