Stocks close bearish over rupee depreciation, political tension

KARACHI: The Pakistan equity market on Tuesday closed lower amid investors’ concerns over rupee falling to record low and political uncertainty.

“The investors’ concerns over the current account deficit and higher import bills owing to surging global crude oil, coal and steel prices played a catalyst role in the bearish close,” Ahsan Mehanti at Arif Habib Corp said.

The Pakistan Stock Exchange KSE-100 shares Index shed 0.06 per cent, or 26.43 points, to close at 43,203.79 points. The KSE-30 shares Index shed 0.14 per cent, or 22.60 points, to close at 16,471.60 points.

As many as 320 scrips were active of which 155 advanced, 143 declined and 22 remained unchanged.

“The market observed a dull session today aimed at profit-taking and a lack of positive triggers. An environment of uncertainty has engulfed the market led by heightened political tensions and a no-confidence vote,” an analyst at Pearl Securities said.

“Moreover, global oil and other commodity prices have also rebounded keeping the investors at bay. Going forward, we expect the market to remain under pressure, therefore we suggest our investors adopt the “Sell on Strength” strategy,” he added.

The ready market volumes stood at 138.28 million shares, compared with the turnover of 124.94 million shares in the last trading session.

The companies which reflected the highest gains included Unilever Foods up Rs200 to close at Rs23,449.50/share, and Colgate Palm up Rs88 to close at Rs2,288/share.

The companies that reflected the most losses included Rafhan Maize down Rs296.67 to close at Rs11,403.33/share, and Nestle Pakistan down Rs124.40 to close at Rs5,515.60/share.

The highest volumes were witnessed in Treet Corp with a turnover of 15.35 million shares. The scrip gained 20 paisas to close at Rs30.07/share, followed by TPL Properties (XB) with a turnover of 8.38 million shares. It gained 50 paisas to close at Rs17.88/share. Pak Elektron(R) remained the third with a turnover of 7.35 million shares. It gained 9 paisas to finish at Rs1/share.