Stock market sheds 846 points in outgoing week
Sector-wise negative contributions came from Fertilizer down 253 points.
(Web Desk) - The bears took control over the market in the outgoing week, as it lacked direction and shed 846 points or 2 percent to close at 41,742.24 points.
Sector-wise negative contributions came from Fertilizer down 253 points, Cement 223 points amid weak dispatches in August 2018, Power Generation and Distribution 111 points, Commercial Banks 82 points, and Oil and Gas Exploration Companies 51 ponts. Whereas positive contributions came from Tobacco 80 points and Food and personal care products 11 points.
Scrip-wise negative contributions were led by Lucky 101 points, Fauji Fertilizer 91 points and ENGRO 75 points. The capital market activity, however, continued to remain shoddy as volumes remained low, with the average total volume traded on the all-share index and the main board being 177.48 million shares and 83.13 million shares respectively.
With the results season in full swing and the futures rollover consolidation in effect the market stayed mostly in red, especially amid a lack of positive triggers.
Foreign investors turned out to be net sellers of 9.37 million dollars. Among the local investors, insurance companies were the largest net buyers at 5.22 million dollars. The fertilizer sector was in the limelight, as the new government looks to improve Urea supplies. However, this failed to yield any positive momentum in the sector, as it was set back by rumors of the new government taking back the Rs 10 billion subsidy allotted to the sector earlier to keep Urea prices lower.
An analyst from Ismail Iqbal Securities said that the gas tariff hike was also on the agenda, which led to pressure in the market; however, this decision got deferred. Next week he expects the market to be mixed. Earnings announcements and the next ECC meeting are events to watch out for next week.
A key event that could generate market activity during the upcoming week includes follow up meeting of the ECC to determine fate of the fertilizer sector amid the ongoing demand supply scenario. On the political front, Presidential election of Pakistan is scheduled for next week along with visits from the US Military Chief General Dunford and Secretary of State Pompeo. Hence, the market is expected to remain range-bound.
