Stocks shed 771 points on lack of triggers

KARACHI: Shares listed on the Pakistan Stock Exchange registered a modestly positive opening on Monday before succumbing to a selling spree.

Topline Securities said a number of unfavourable factors kept the index of representative shares down throughout the day. The current account, which was in surplus for four consecutive months, registered a deficit of $0.8 billion in July, hurting sentiments of investors. In addition, there was a consistent decline in the value of the rupee against the dollar, with the closing rate clocking in at 297.13, down 0.45pc, in interbank trading.

The recently announced refinery policy came with incentives, which were lower than investors’ expectations. In addition, there has been no update thus far on the circular debt management plan. All these factors contributed to the bearish trend, it said.

As a result, the KSE-100 index settled at 47,447.96 points, down 770.54 points or 1.6 per cent from the preceding session.

The overall trading volume decreased 17.1pc to 211.2 million shares. The traded value decreased 32pc to Rs7 billion on a day-on-day basis.

Stocks contributing significantly to the traded volume included WorldCall Telecom Ltd (51.4m shares), K-Electric Ltd (8.4m shares), Oil and Gas Development Company Ltd (7.3m shares), Pakistan Refinery Ltd (6.2m shares) and Pakistan Petroleum Ltd (6.1m shares).

Companies registering the biggest increases in their share prices in absolute terms were Mehmood Textile Mills Ltd (Rs42.95), Sanofi-Aventis Pakistan Ltd (Rs20), Towellers Ltd (Rs10.78), Atlas Battery Ltd (Rs3.79) and Shahmurad Sugar Mills Ltd (Rs3.21).

Companies that recorded the biggest declines in their share prices in absolute terms were Nestle Pakistan Ltd (Rs200), Rafhan Maize Products Company Ltd (Rs137.50), Sitara Chemical Industries Ltd (Rs18.75), Mari Petroleum Company Ltd (Rs17.56) and Gatron Industries Ltd (Rs17.50).

Foreign investors were net buyers as they purchased shares worth $1.3m.