Stocks repeat rout as oil drags energy down

Stocks broadened the rout on Friday with energy sector taking most of the beating owing to retreating crude oil drags amid continued profit-selling at the local market, dealers said.

Stocks repeat rout as oil drags energy down

Stocks Repeat Rout As Oil Drags Energy Down : Pakistan Stock Exchange (PSX) KSE-100 shares index shed 0.54 percent or 247.16 points to close at 45,808.36 points.

KSE-30 shares index shed 0.61 percent or 117.51 points to close at 19,104.50 points. Volumes plunged to 442.716 million shares from 1.12 billion shares a day earlier.

Topline Securities in its daily market review said the E&P (exploration and production) sector led the decline with POL losing 3 percent to close at Rs400.51, while OGDC and PPL lost 1.93 percent and 1.50 percent respectively.

“During the week, Individuals, companies, mutual funds and brokers net purchased equities worth $6.99mln, $1.04mln, $1.91mln and $1.21mln respectively, whereas insurance, banks and foreigners net sold equities worth $9.76mln, $0.55mln and $4.75mln respectively,” it added.

MTL and AGTL posted impressive monthly sales growth of 30 percent and 290 percent month-on-month after which both stocks closed 1.65 percent and 2.36 percent higher respectively, the brokerage said.

Arif Habib Limited in a report said the second session saw aggressive selling, particularly in E&P, banks and oil and gas marketing companies that brought the index down by 247 points. “Drawdown in international crude oil prices supplemented the decline in E&P sector,” the report said.

Ahsan Mehanti at Arif Habib Corp said stocks closed lower amid thin trade as investors weighed weak global equities and slump in global crude oil prices. He said cement and textile stocks outperformed the index due to surging local cement prices and reports of higher textile exports.

However, government’s measures regarding massive surge in power tariff, foreign outflows and concerns over weak earnings outlook played a catalytic role in bearish close, Mehanti added.

Cement sector continued the uptrend with DG Khan Cement, Lucky Cement, and Pioneer Cement adding 303 points to the index during the session.

Technology stocks also saw profit-booking, barring NETSOL that despite declaring nominal earnings per share (EPS) and hitting a session-low, bounced back strong.

Nishat Power Limited (NPL) closed 3.9 percent in the negative trajectory as its 1HFY21 consolidated EPS of Rs4.142 came out below market expectations.

Danish Ladhani at JS global Capital said selling pressure was seen in the second half; however, cements once again buoyed up the overall sentiment of the investors.

“Looking at today’s trend we believe profit-booking could continue and recommend investors to buy on further dips,” Ladhani said.

Indus Dyeing, up Rs39.9 to close at Rs639.9/share, and Sunrays Textile, up Rs39.57 to close at Rs600/share, secured highest gains in the day.

KSB Pumps, down Rs28.5 to close at Rs351.5/share and Sapphire Fiber down Rs28 to end at Rs900/share, took the worst hits.

World Telecom was on top of volume chart with 58.66 million shares.

The scrip lost 12 paisas to close at Rs1.39/share. Telecard Limited was second on the chart with a turnover of 37.85 million shares, shedding 45 paisas to close at Rs5.63/share.

TRG Pakistan stood third with a turnover of 17.99 million shares, but lost 24 paisas to finish at Rs117.32/share.

Originally published at The news international