KARACHI

Stocks closed bearish at KSE Tuesday amid institutional profit-taking in over bought stocks across the board.

After initial appearance of the bulls, bears dominated the entire session to close the market 269 points down at 33,035.77 points or 0.8 pc level after increasing by 3.7pc in last 4 sessions.

Volumes declined to 252m shares (Rs13.7b/ $137m) compared to 382m shares worth of Rs20b/ $201m changed hands previous day.

Due to a 16pc YoY decline in textile exports the whole sector remained under pressure where GATM, NML, NCL and KTML all closed down 4.96pc, 4.17pc, 3.33pc and 2.57pc respectively. Better than expected financial results led the rally of EFOODS up 4.85pc and SEARLE rose 4.57pc. As global oil prices drop, index heavy weight oil sector remained under pressure with the exception of PPL and APL that barely remained in green, observed analyst Ahmed Saeed Khan.

Investors focus remained towards converting future positions to next futures contracts. Investors also remained concerned about the news that National Accountability Bureau (NAB) has recommended to the Federal Board of Revenue (FBR) to collect data about sources of investment.

EFOODS continued to rally for 2nd session after first quarter earnings announcement. It closed at 5pc upper limit with 12m shares traded (Rs.1.76b/ $176m).

SEARL announced impressive growth in March quarter result announced today. Stock closed 5pc upper limit with volumes of 1.9m shares (Rs.468m/ $4.68m).

Smooth future roll over and further clarification on NAB statement is expected to bring investors’ interest back in market, commented an investment analyst.

New measures suggested by NAB for FBR to check tax evasion in exchange transactions, dismal data on textile sector exports for Jul-Mar’15 and cautious activity ahead of NA Polls in Karachi on April 23 played a catalyst role in bearish activity at KSE ignoring strong result announcements in chemical and pharma sectors, stated analyst Ahsan Mehanti.