KARACHI: The stock market extended the decline on Wednesday with the KSE-100 index shedding another 203.46 points to close at 31,469.70.
The session was marked with low volatility with the index managing to make a high of 33 points, before retreating. Traded volume decreased 26pc to 124 million shares and value declined 42pc to Rs5.4 billion.
Despite of decent corporate results, volumes have been shrinking. Foreigners sold stocks worth $1.93m, taking the year-to-date outflow at $76.99m.
Investors booked profits in stocks of oil exploration companies. OGDC declined 1.7pc and PPL dropped 0.9pc.
“Iran’s statement regarding Opec’s decision hammered investor sentiment as E&P took away 46 points. Going forward, we expect the market to remain volatile over uncertainty in global oil prices,” stated dealers at Global Securities.
Banking stocks were also in the red as investors closed out their positions. HBL and MCB were down 1.4pc and 1.2pc, respectively.
Results of HUBC (down 0.8pc) and UBL (fell 0.6pc), which were in-line with market estimates, failed to excite investors.
Analysts at Intermarket Securities stated that HBL, FFC, OGDC, MCB and HUBC contributed negative 118 points to the index.
Mid-tier cement players still seem to be in limelight after posting handsome results in 1HFY16.
Ahmed Saeed Khan at JS Global said that the fertiliser sector continued to be haunted by declining urea prices and prospects of a rise in gas prices.
Ahsan Mehanti at Arif Habib Corp commented that stocks closed lower on concerns of foreign outflow, dismal exports and weak earnings outlook at PSX. Uncertainty in global equities and falling crude prices were major concerns for the market.
Courtesy : Dawn News