Corporate results are likely to help the market regain its strength enfeebled by long-pending Panama verdict, although oil stocks continued to lend support to the benchmark Index during the week ended April 14, dealers said. Investor sentiment at the Pakistan Stock Exchange (PSX) remained depressed owing to political uncertainty, which was further aggravated by renewed tension with India and a lack of triggers.
“Risk aversion emerged at the PSX as investment outlook seemed to deteriorate in anticipation of overdue Panama case decision,” said Faizan Ahmed, analyst at JS Global.
KSE 100-share Index of PSX shed 0.65 percent or 312.31 points to close the week at 47,577.06 points. KSE 30-share Index fell 0.81 percent or 206.3 points to end at 25,211.91 points.
Trading volumes, albeit up 9.7 percent week-on-week, remained at an unimpressive level of 171 million shares/day. Evaporating liquidity snubbed signs of recovery towards the later part of the week with foreigners also turning out to be net sellers of $2.8 million worth of equities.
Auto sales grew 17 percent in March, making Pak Suzuki the outperformer of the month with its sales increasing 19 percent. Wagon-R remained the prime contributor to the revenue.
Government also ended moratorium on fresh gas connections. It also decided to divest 18.3 percent stake in Mari Petroleum Company Ltd at the stock market after the two joint venture partners refused to buy the shares at a price approved by the cabinet committee on privatisation.
Elixir Securities, in a report, said major losers were Engro (down 3.1 percent), Hub Power Company (falling 2.9 percent) and Mari Petroleum (slumping 7.5 percent).
“Significantly lower earnings of one of its subsidiaries Engro Foods and no clear plan regarding excess cash deployment led Engro to its downfall during the week,” it said. “Mari succumbed to news flow regarding government’s divestment decision.”
Oil sector, however, was the major gainer, tracking international crude oil prices. Pakistan Petroleum was up 1.9 percent and Pakistan Oilfields rose 3.1 percent.