Equities suffer 452-point loss as bears continue
KARACHI: Pakistan Stock Exchange was hammered in the outgoing week by the continued foreign selling, lacklustre corporate results and the nagging regulatory issues, all which forced investors to book profit. The benchmark KSE-100 index suffered a fall of 452.39 points (1.44 per cent) during the week, to close at 31,012. In contrast, the FM (Frontier markets) Pakistan index ended the week with a USD-based return of negative 1.2pc week-on-week, while the FM and EM (Emerging markets) were up 1.3pc and 4.2pc, respectively.
"On the international front, oil prices seem to have secured a permanent spot in the limelight; Saudi Arabia, Qatar, Venezuela and Russia met in a rare and unexpected meeting to arrive at a consensus to freeze outputs at current levels while a follow-up statement from Iran to provide necessary help to support prices, led to a rally in crude prices (up 10pc week-onweek)," said analysts at Arif Habib Ltd. These however, failed to incite any interest in oil scrips.
Foreign portfolio outflow continued and clocked in at $13.2 million as compared to $17.3m last week. Net buying of $5.6m was seen in cement sector, while oil and gas exploration, chemical and banking stocks witnessed net selling of $4m, $3.6m and $1.6m, respectively. Strong financial results from some of the major companies such as DGKC, ENGRO, PSO and HUBC failed to enthuse investors. Beverages and non-life insurance sectors remained major gainers increasing by 5.8pc and 0.7pc, respectively. Chemicals, oil and gas, and food producers remained major losers over the week as they fell by 3.2pc, 1.3pc and 1.2pc, respectively. On a week-on-week basis, gaining scrips included: NBP 7.37pc, PPL 1.18pc, AICL 0.81pc and POL 0.55pc. While laggards were: EFOODS 9.28pc, PSMC 8.16pc, ICI 6.66pc and AKBL 6.08pc, according to AKD Securities. Activity continued to decline with average daily turnover resting at 123.9m shares, down 12pc week-on-week, where TRG (40.6m shares), DFML (32.5m shares), SNGP (29.2m shares) were heavily traded.