KARACHI: Stocks fell for the fifth day on Monday with the Pakistan Stock Exchange’s benchmark KSE-100 index closing down by 187 points, or 0.47 per cent, at 39,278.
The index has lost 745 points in the five-day losing streak, much of it due to investors’ loss of faith in the heavyweight cement sector after huge capacity expansions announced by most big players.
Maple Leaf Cement (MLCF) declined 4.54pc despite better-than-expected financial results as it also announced plans to expand capacity. It has become the ninth company in the sector to join the expansion cycle.
Trading volumes at the market decreased 23pc to 252 million shares as investors were reluctant to book loses. Trading value declined 21pc to Rs9.9 billion. Net foreign outflow on Monday amounted to $2.45m.
“Dewan Farooque Motors (DFML) announced that it would manufacture vehicles under toll manufacturing agreements, which resulted in the stock to hit its upper limit of 5pc,” noted analysts at Topline Securities.
Selling pressure was seen in the fertiliser sector on the back of news that companies slashed urea prices by up to Rs100 per bag in order to compete with urea imported by state-run fertiliser company National Fertiliser Marketing Ltd. Engro Corporation (ENGRO; -1.67pc) and Engro Fertiliser (EFERT; -0.85pc) were major losers in the sector.
However, shares of exploration and production companies salvaged the situation on the back of massive intraday rally of up to 5pc in crude oil prices as Saudi Arabia and Russia said they would work towards cooperation to support oil prices. The Oil and Gas Development Company (OGDC; +1.83pc), Pakistan Oilfields (POL; +2.88pc) and Pakistan Petroleum (PPL; +1.12pc) were leading gainers in the sector.
Oil marketing companies also performed well thanks to Pakistan States Oil (PSO; +0.23pc) and Attock Petroleum (APL; +1.41pc).
Autos rose on improved earnings expectations. Honda Atlas Cars (HCAR) gained 2.64pc and Ghandhara Industries (GHNI) hit its upper circuit. However, Pak Suzuki (PSMC; -1.30pc) and Indus Motors (INDU; -0.54pc) closed in the negative.