KARACHI: Pakistan equities tumbled again Thursday with benchmark KSE-100 Index finishing near 43,100 points level, down by over 1000 points or 2.4 percent and most in over 8 months.
Negativity prevailed in the market during the day as the index lost 1,051 points to close at 43,136 levels. The negative sentiments were likely a result of political turbulence, coming from the recent announcement of National Accountability Bureau (NAB)’s Friday summon for booted out prime minister Nawaz Sharif and his two sons.
“Start to the day was on weaker note with wider market failing to build on previous day’s momentum due to anxiety on political front. Sentiments were primarily dented on news that Country’s apex anti-corruption organization has summoned the sacked PM Nawaz and his sons for interrogation related to Panama allegations”, said Elixir Research’s analyst.
Notable blue-chips across major sectors along with sideboard names received hammering on reported institutional and prop book selling. Meanwhile, quarterly earnings announced during the day by various companies also failed to have any impact on activity in wider market; Hub Power (Hubco) losing 2.2 percent and Bank Al-falah (BAFL) losing 2.5 percent both closed lower after results announcements.
“We see market to trade volatile and choppy tomorrow with investors likely staying cautious and selective amid prevailing political noise”, he added.
Market was lackluster with total volume of 167 million shares. Azgard Nine Limited i (ANL) with losing 3.84 percent from the textile composite sector led the market volume as 11 million shares were traded in the market.
Allied Bank limited (ABL) lost 0.60 percent from the banking sector as it announced its result for first half 2017 an EPS of Rs5.75 and DPS of Rs1.75, taking first half 2017 payout to Rs 3.5.
Hubco with 2.19 percent decline also declared its result for FY17, EPS Rs9.24 and DPS Rs2.50 for the period was announced.
Commercial bank heavyweight stocks Habib Bank limited (HBL) with 3.18 percent decline , MCB Bank with 2.59 percent decline and United Bank limited (UBL) with 1.86 percent decline were among the major laggards of the KSE-100 index.
Pakistan Petroleum Limited (PPL) losing 2.24 percent, Pakistan Oil Fields (POL) losing 4.83 percent and Oil and Gas Company Limited (OGDC) with 3.17 percent from the Exploration Production sector cumulatively contributed -143 points to the index.
“We believe the political scenario has prolonged and is expected to continue to affect the stock market. Moving forward we recommend investors to stay cautious and avoid short term positions”, said JS Research’s analyst Maaz Mulla.
