KARACHI – Stock market, which closed the previous week at all-time high level of 43087 points, started the new week on a dismal note as the 100-share index declined by 323 points due to profit-taking. The index closed at 42,526 points.
Market opened on a positive note and rallied to make an intra-day high of 235 points but came under selling pressure during the latter hours, as the index fell to close in the red zone.
Banks mainly led the index to decline as UBL and HBL contributed 104 points to the fall in index. Stocks declined between 2% to 2.9%. INDU (down 1.99%) in the automobile sector lost value to close in the red zone, as sales number released by PAMA indicated a YoY decline of 26% in the automobile assembler sales numbers for the month of Oct-16.
This decline in sales number was due to one off disruption in production of Corolla due to problem in assembly line and company’s decision to gradually phase out current model of Hilux.
Both the gas utilities SNGPL (down 0.90%) and SSGC (1.11%) declined to close in the red zone on the back of the news that government has decided not to increase gas prices in response to written letter from OGRA in which the regulator proposed increase in gas prices.
FFBL (1.31%) gained as fertilizer importers have turned down government proposal to cut down prices of DAP from Rs2,500 to Rs2,250 per 50kg bag to bring it in line with the recent decline in the international market prices, observed analyst Nabeel Haroon.
Overall, volumes increased by 2.4 percent to 554m shares, while value increased by 3.5pc to Rs17.6b/$169m.
Profit taking in cements led LUCK, FCCL and DGKC to decline by 2% each. BOP led the volumes with 62m shares traded. Stock gained 1%. While PIA and Summit traded 47m and 42m shares respectively. Total 424 active scrips participated in the session, of which 250 closed in red, 161 in green while 13 remained unchanged.