KARACHI
Downturn in international oil prices and a short future rollover week ahead negatively affected the market sentiments on Monday. The benchmark KSE 100-share index, on first trading day on week, declined by 118 points (0.4%) to close at 32,658.97 points. Continued selling was seen in HBL which dragged the stock further to close down 4% in yesterday’s session, stated Mohammad Rizwan, head of sales at Topline Securities. Lack of direction in international oil prices kept investors vary of oil stocks. As a result, OGDC, PPL and POL declined 0.7-1.3%.
OGRA approved the summary of increase in gas prices which will affect the profitability of textile companies. NML declined 2.3% and NCL was 1.9% down. Price hike news of gas and lower international prices of urea affected profitability of local fertilizer manufacturers. Stocks like FFBL, EFERT and FFC declined by 0.1-1%. Total volume decreased by 3.6% to 90m shares while traded value decreased by 30% to Rs6.9b. Analyst Ahsan Mehanti said stocks closed bearish amid pressure in banking stocks on likely impact of prevailing global compliance and regulatory issues on the banking sector.
Fears linger over hike in US interest rates likely to trigger capital outflows in emerging markets and ongoing pressure in global crude prices. Concerns for political resistance over privatisation of SOEs played a catalyst role in the bearish activity in the futures rollover week, observed market participants.