LAHORE - Bulls lost control as profit booking was witnessed at the PSX, where the index made an intraday low of -953 points to close at 42,712 levels, down 1.9percent. This selling pressure in the market came after straight three positive sessions which cumulatively contribute around +2400 points at the local bourse. Volumes were recorded at 275million shares, down 27percent as compared to yesterday.
FCCL (-4.3percent) from the cement sector led the volume with almost 17million shares exchanging hands. On the economic news front, United States Secretary of State Mike Pompeo has warned that the US would closely be watching whether the International Monetary Fund (IMF) bails out Pakistan. He further added "There's no rationale for IMF tax dollars and associated with that, American dollars that are part of the IMF funding to bail out Chinese bondholders or China itself". Cement sector came under the hammer, where CHCC (-5.0percent), PIOC (-5.0percent), FCCL (-4.3percent), DGKC (-4.4percent) and LUCK (-4.4percent) lost value to close in the red zone. FFL (+5.0percent) and FFBL (+5.0percent) both closed at their respective upper circuits on the back of news that Chinese dairy giant has shown interest in acquiring 51percent shares of Fauji Foods Limited (FFL). FFC (-1.6percent) from the fertilizer sector declared its 1H2018, where the company posted an EPS of Rs. 3.61/ per share and a cash payout of Rs. 1.40. This is an addition to interim dividend already paid at Rs. 1.75/per share. Experts said that after rallying consecutively, gaining 3,092 pts since 24 Jul 2018 in the last 4 sessions, Pakistan equities ended its winning streak and fell 844 points as market participants resorted to profit-taking.
Moreover, United States' Secretary of State Mike Pompeo warned Pakistan against using IMF bailout fund (in case Pakistan decides to enter the programme) to pay off Chinese debt, which further dented market sentiments.
Commercial banks and Fertilizers contributed 318pts to index decline. However, FFBL closed at upper lock due to an offer received from Inner Mongolia Yili Industrial Group Company Limited to acquire 51percent shares of the company's subsidiary Fauji Foods Limited (FFL).
Trading activity slowed down compared to yesterday as the volume closed at 274million shares down by 27percent while value traded down by 9percent.
Experts said that with uncertainty over Rupee-Dollar parity, rupee further appreciated by Rs0.92 to close at Rs124.18 in the interbank market.