Stocks closed lower on Tuesday due to decline in world oil prices, with the KSE 100-index closing at 34,031 points after losing 152 points.
Volatility prevailed in yesterday’s session followed by a glut of crude oil pushing international prices down to trade around $46.80 mark. Therefore, the E&P sector remained under pressure, forcing the index to remain in the red zone .
“Negativity can be attributed mainly to E&P sector along with cement and fertilizer sector. News of LUCK expanding in the North gave rise to speculation that other major players will do the same, which can eventually lead to the big players to get into a price war to capture market share, although this speculation will become valid as and when these expansions come on line which would take another 2-3 years,” observed analyst Ahmed Saeed Khan.
Biggest laggards of the sector were CHCC, down 1.13%, and LUCK that declined 1.03%. Confusion still prevails over the pricing of fertilizers per bag, therefore pressure was seen on the sector overall.
Traded volume increased to 239m shares (up 22%) while traded value improved by 10% Rs10.8b/$103m.
Due to more than 5% correction in international oil prices some profit taking was seen in local oil stocks like OGDC, PPL and POL 2.52%, 2.45% and 1.60% respectively, stated dealers at Topline Securities. Some support was witnessed in banking stocks on the back of improved upcoming quarterly results. HBL and MCB were up by 0.88 to 2.16%
During the trading secession, EFOODS remained in the lime light on the expectation of good quarterly result which helped the stocks to gain 2.32%.