KARACHI – Stock market closed bearish on Monday amid pressure in global equities and investors’ fears over continuing foreign outflows.The benchmark 100-share index declined by 55 points to close at 33,684.56 points. 

Pakistan Stock Exchange opened on a negative note with the index making an intra-day low of 247 points. However, it recovered to close just 55 points down, brokers said. Banking sector was a major laggard due to depressed banking sector spreads for the month of Mar-2016. UBL closed down 1.84%, HBL declined 0.78% and MCB 0.55%, dealers stated.

Besides, profit taking continued in the cement sector, where LUCK, which went down 0.75%, announced lower-than-expected 9MFY16 EPS of Rs29.73. On the other hand, EFERT, up 0.19%, rallied after announcing its 1Q2016 result, where EPS clocked in at Rs1.55 which was above market expectations.

Mixed sentiments prevailed in the oil and gas sector as global crude oil prices retreated by about 1.5% from its high over the weekend, observed analyst Ahmed Saeed Khan.

Volume decreased by 21% to 171m shares while value also decreased by 25% to Rs 6.4b/61$m. Analyst Ahsan Mehanti said activity was led by second and third tier scrips.

Speculations over the federal budget levies on corporate sector & HNWIs, rising political uncertainty and weak earnings outlook in the banking, textile sector played a catalyst role in bearish close amid institutional support on strong financial results in the power and auto stocks, analysts added.

 

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