KARACHI: Stocks remained depressed on the first day of trading on Thursday after the Eid holidays, pulling the KSE-100 index down by 113 points (0.3 per cent) to close at 40,216. The index, however, recovered from its intra-day lows of 40,135 points.
Trading volume stood at 531 million shares against 638m shares that changed hands on the last working day and trading value also declined to Rs11.4 billion from Rs16.2bn. The investors, though still in festive mood, traded freely in low market cap stocks. Pace Pakistan and Bank of Punjab were volume leaders with cumulative trading volume of 92m shares. Both scrips closed at their upper limits (5pc).
Investors’ perception of political risk improved a bit as the Pakistan Awami Tehreek announced that it would not be participating in PTI’s Raiwind march. Yet foreign investors sold out stocks worth $2.1m.
Global crude oil prices sharply declined during the week after the International Energy Agency reduced its forecast of WTI crude and pointed out to persistence of supply glut into 2017. This resulted in weak sentiments in oil and gas exploration stocks. Biggest laggards of the oil sector were OGDC down 2.18pc and POL 1.44pc. On the cement sector, lead gainer was BWCL (1.80pc).
Overall, major selling pressure on Thursday came from oil, banks and power sectors where UBL lost 2.95pc, HBL 0.86pc, NBP 0.83pc, Hubco 0.88pc and OGDC 2.18pc. Automobiles sector continued to climb where stocks like GHNL, GTYR and DFML closed at their upper circuits.
Analysts at Intermarket Securities said: “Market still requires broad based volumes in the main stream names besides the second- and third-tier stocks that have carried most of the momentum.”