Stocks witness another bearish day

KARACHI - Bearish sentiments continued to persist at PSX in third consecutive session and profit-taking led the shares index to decline by 148 points and to finish at 48,376 level.

Market started with a positive trend due to SECP approving recommendations of the committee on review of financing by securities broker to clients. However, positive trend was short lived as selling pressure was witnessed due to the ongoing high-profile case result expected in the coming week. The index traded between an intraday high of 386 points and intraday low of 187 points, finally closing at 48,376 level (down 148 points), dealers said.

Heavy weights like HBL and LUCK contributed 98 points to the fall in index while stocks declined 1.6 percent and 2 percent respectively. Interest was observed in PAEL as the stock gained 3 percent, market participants said.

E&P sector increased in value to close in the green zone as oil prices edged higher, hitting a one-week high. Banking sector (slip 0.7%) extended its previous day loss and closed in the red as the sector’s heavy weights, MCB (decline 1.6%) and HBL (1.7%), closed in the red again. Moreover, PSMC (slump 1.5%) in the auto sector lost value to close in the red as the Board of Investment (BoI) has maintained its stance on the Auto Policy 2016, said analyst at JS Global.

Analyst Ahsan Mehanti said stocks close lower amid consolidation in the post earnings season. Mid session rally after SECP approvals over review of financing by broker firms invited investor interest in second and third tier stocks. Foreign outflows, uncertainty in global stocks and concerns for rising circular debt played a catalyst role in bearish close.

Overall, volumes increased by 24 percent to 272 million shares, while value rose by 32 percent at Rs13.7 billion/$131 million. ANL (slip 4.2%), BOP (3.9%) and POWER (rose 3.5%) were the volume leaders.

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