PSX falls on first trading day as ECC defers gas load management summary

Trading volume declined by 19 percent from the last trading session

KARACHI (Dunya News) – The opening of capital market on first day of the new week was led by declines as Economic Coordination Committee (ECC) deferred gas load management summary and tariff related issues of textile and other industries which resulted in across the board declines.

The KSE 100 index decreased 335.91 points shortly after the commencement of the session to touch an intraday low of 41,052.97. It ended lower by 292.55 points at 41,096.33. The KMI 30 index rolled lower by 193.23 points to close at 19,686.91, while the KSE All Share index declined by 118.71 points to settle at 29,816.55. The advancers to decliners ratio stood at 106 to 222.

Trading volume declined by 19 percent from the last trading session and was recorded at 178.02 million. K-Electric Limited (KEL -0.99 per cent) led the volume chart exchanging 17.72 million shares, followed by Lotte Chemical Pakistan Limited (LOTCHEM +2.61 per cent) with 15.91 million shares traded. Siddiqsons Tin Plate Limited (STPL -0.53 per cent) was next in line with 11.97 million shares.

A meeting of the ECC held under the chairmanship of Finance Minister Asad Umar in Islamabad where decision related to gas load management was postponed for other meetings.

Market observers were expecting some relaxation from the government quarters especially for the textile mills. According to one of the members of APTMA the decision to provide reduce tariff structure was discussed in September and notification was released on September 27, but despite this decision the bills received by all the export related industries was on higher side, which led to depression in the stock prices. They were expecting that ECC would revisit the decision and reduce tariff structure would be announced for five export oriented industries.

Murtaza Jaffer from Elixir Securities said that the index traded under pressure due to lack of triggers as Ministry of Finance discusses bailout package with IMF Officials in Islamabad.

He said that rounds of selling estimates kept investors at bay in index heavy blue chips as MSCI Semi Annual Review announcement is due on 13th November.

“We expect Lucky Cement to be downgraded from MSCI Emerging Market Index to Small Cap Index while United Bank Limited remains a borderline case – both the stocks remained under pressure throughout the session, and accounted for a decline of 90 points in KSE100 Index, as investors preferred to reduce allocations ahead of review announcement.

“We expect the market to find support around 40,500-40,700 levels as details from Bailout Package emerge out of the ongoing talks with IMF”, Jaffar said.

– Details by Harris Zamir