KARACHI - Pakistan Stock Exchange failed to maintain positive trajectory on Tuesday, as political turbulence has again started its negative influence on investors’ sentiments after approval of NAB’s executive board to initiate inquiry on Chaudhry sugar mill scandal and to file three supplementary references against ex-PM Muhammad Nawaz Sharif. As a result, market closed down 124 points at 43,705 points.

Market opened positive and touched a high of 215 points as institutional participation was witnessed mainly in the cement stocks on back of the news that there has been an additional increase of Rs10/bag in the cement price of northern region, dealers said.

Cement’s performance remained mixed despite of further increase in market prices by ~Rs 10 per bag. Cumulatively, cement stocks contribution remained limited to 20 points to the index gain. EPCL lost 4% in its value in expectations of probable announcement of right shares as company has notified exchange regarding its announcement of close period from 6th March to 13th March to consider certain corporate actions.

Besides cement sector, healthy activity was observed in gas utilities on the back of possible recovery of UFG losses from consumers. Although, price gain got eroded in later trades due to possibility of stay order from Supreme Court which could negate any possible improvement for the Sui companies. Lackluster activity was observed in blue chip stocks such as E&Ps and banks.

Top 5 stocks including DGKC (up 2.5%), HCAR ( 4.3%), BAFL (1.9%), FCCL (1.4%) & BATA (4.5%) added 50 points to the index gain, whereas stocks including HBL (down 1.6%), ENGRO (1.2%), BAHL (1.7%), KTML (3.5%) & LUCK (0.6%), withheld 114 points from the index gain.

Volumes improved from 137m shares to 177.5m shares (up 30% DoD). Average traded value also increased from $53.5m to $72.8m (+36% DoD).

Stocks that contributed significantly to the volumes included FCCL, UNITY, DSL, BYCO and NRSL, reflecting 28% of total volumes.