KARACHI

Bears on Monday dominated the day as the market ended 419 points lower to end at 33213.58 points, down by 1.2pc.

After a positive opening, the benchmark KSE-100 index failed to maintain the momentum and saw panic selling by retail investors and institutions.

EFERT remained in the limelight as Ogra approved the terms of agreement among Engro Fertilizers, Sui Northern Gas Pipelines and Mari Petroleum for the supply of gas at concessionary rate of $0.7/mmbtu to the company. PSO declined 1.2pc as the company announced loss of Rs3.53/share for the 2QFY15, largely due to inventory losses incurred by the company during the quarter, commented analyst Fahad Ali.

Pakistan stocks fell 1.3pc due to speculation that foreigners are net sellers in market after $10m net outflow last week.  Today’s volume of Rs10b/$103m is lower than last 3 months average daily volume of Rs14.5b/$145m showing many investors are on the sideline.

Locals are also facing liquidity shortages as they have already absorbed net selling by foreigners of $109m in last 3 months.

Announcement by Engro Fertilizer that EnVen plant will get concessionary gas helped its share price which increased by 0.4pc. But this news was already expected by investors. PSO result announcement of EPS15.76 was slightly below expectations. PSO closed at 378.65 down 1.2pc.

Due to bearish spell, February CPI reading of 3.24pc which was better than market consensus had no positive impact on share prices. In the short run market is expected to remain under some pressure and investors will continue to focus on foreign flows, observed Samar Iqbal VP at Equity Sales Topline Securities.

Another bearish session witnessed at KSE on weak earnings outlook in oil, banking and cement sectors. Falling international oil and cement prices, lower banking spreads and below expected earning of Pakistan State Oil played a catalyst role in bearish activity at KSE despite rising off take in fertilizer sector and expectations for lower CPI Inflation for Feb’15, said analyst Ahsan Mehanti.

Pak Elektron was the volume leader in the market with 10.73m shares and price per share Rs59.25, followed by Pak Int. Bulk with 9.97m shares and price per share Rs33.16 and Jah.Sidd.Co with 9.15m shares and price per share Rs20.25 were in limelight in market.