Stocks extend losses on poor economic conditions
Share prices moved both ways before settling on the lower side as a result of uncertain macroeconomic conditions.
Arif Habib Ltd said the volume for mainboard stocks dropped while third-tier companies continued their dominance on the trading counter.
A lack of positive triggers on the market kept investors away from participation, said JS Global. According to analyst Ahsan Mehanti, dismal data on exports, down 16.6 per cent year-on-year, along with a drop in the cotton output by 37.23pc and a slump in petroleum sales by 11pc played a key role in in the bearish close.
As a result, the KSE-100 index settled at 40,539.30 points, down 91.34 points or 0.22pc from the preceding session.
The overall trading volume decreased 28.9pc to 142.9 million shares. The traded value went down 12.9pc to $19.1m on a day-on-day basis.
Stocks contributing significantly to the traded volume included Dewan Farooque Motors Ltd (10.8m shares), Sui Southern Gas Company Ltd (10.7m shares), AlShaheer Corporation Ltd (9.3m shares), Sui Northern Pipelines Ltd (8.9m shares) and WorldCall Telecom Ltd (7.2m shares).
Sectors contributing the most to the index performance were exploration and production (-49.4 points), commercial banking (-36.5 points), power generation and distribution (-17.7 points), engineering (-8.6 points) and oil marketing (-7.0 points).
Companies registering the biggest increases in their share prices in absolute terms were Rafhan Maize Products Company Ltd (Rs499), Premium Textile Mills Ltd (Rs34.97), Reliance Cotton and Spinning Mills Ltd (Rs26.09), Al-Abbas Sugar Mills Ltd (Rs24.25) and Pakistan Engineering Company Ltd (Rs21.56).
Companies that recorded the biggest declines in their share prices in absolute terms were Nestle Pakistan Ltd (Rs100), JDW Sugar Mills Ltd (Rs14.66), the Thal
Industries Corporation Ltd (Rs14.35), Suraj Cotton Mills Ltd (Rs11.62) and Pak Suzuki Motor Company Ltd (Rs10.62).
Foreign investors were net buyers as they purchased shares worth $0.12m.
The United States has thrown its weight behind the counter-terrorism decisions taken by the National Security Committee (NSC) in its recent meeting, saying "Pakistan has a right to defend itself from terrorism".
The statement from US State Department Spokesperson Ned Price comes two days after the NSC - the highest civil-military forum for decisions on matters pertaining to national security expressed firm resolve to crush terrorist groups operating against Pakistan.
In the NSC meeting that spanned for two days from Dec 31 to Jan 1, the forum had categorically asked Afghanistan's rulers - without directly naming them - to deny safe haven to Pakistani terrorist groups on its soil and end their patronage, while reiterating its intent to crush terrorist groups operating inside the country with full force. The uncharacteristically strongworded statement issued at the end of the NSC meeting said: "Pakistan's security is uncompromisable and the full writ of the state will be maintained on every inch of Pakistan's territory."
At a press briefing on Tuesday, the US State Department spokesperson said the US was aware of the NSC's recent statement. "The Pakistani people have suffered tremendously from terrorist attacks. Pakistan has a right to defend itself from terrorism," Price said in response to a question.