KARACHI: The Pakistan Stock Exchange continued to struggle in choppy trade on Tuesday as lack of triggers and relentless foreign selling for the last few days were a cause for concern for investors, who focused on the Panama Papers hearing in the Supreme Court of Pakistan.
As the Supreme Court shifted the hearing till Nov 17, uncertainty over its outcome remained. Investors decided to take profit and wait for a more opportune moment to buy. The benchmark KSE-100 index, thus, faltered by 233 points (0.55pc) to close at 42,293.
Overall, the volume of shares traded during the day fell 34pc to 366 million shares over the previous day, while the value decreased by 33.5pc to Rs11.8 billion.
Analysts at Intermarket Securities said the major outflow was witnessed from the banks, power, fertiliser and oil-marketing companies. Banks extended losses from the previous session with Habib Bank’s share going down by 1.99pc, United Bank 1.12pc and MCB Bank 0.65pc.
Hub Power Company Ltd and the Pakistan State Oil lost 1.4pc and 1.6pc, respectively, on unconfirmed news that they had been removed from the Morgan Stanley Capital International’s (MSCI) emerging-market index and added to its small-cap index, dealers at Topline Securities said.
Fertiliser stocks came under selling pressure after reports that Fauji Fertiliser (FFC) has cut its urea prices by Rs50 per bag. FFC’s share fell 0.58pc and also dragged down its peers. Engro Fertiliser fell 0.17pc, Fauji Fertiliser 0.11pc, Fatima Fertiliser 1.10pc and Engro Corporation 0.39pc.
Cements were also down despite slight decrease in international coal prices. Kohat Cement’s share price was down 1.09pc, Maple Leaf Cement 2.12pc, Pioneer Cement 1.35pc and DG Khan Cement 0.20pc as they remained under selling pressure amid deteriorating overall sentiment.