Equities end lower for second straight session

Dawn reported that the Pakistan Stock Exchange ended lower on Wednesday, extending its decline to a second consecutive session. The KSE-100 settled at 176,846.36, down 1,109.15 points or 0.62 per cent, after early gains reaching 178,942.31 were fully erased by selling that pushed it to a low of 176,638.11. Late selling driven by worries on economic and political fronts kept investors on edge.

The session opened higher after reports that the government plans to tackle Rs1.49 trillion of the Rs3.6tr gas sector circular debt, a settlement that will be drawn partly from bigger dividends paid by state-owned E&Ps plus greater petroleum development levy receipts, according to Topline Securities Ltd. Sentiment weakened once media outlets reported that the petroleum minister planned talks with local refineries on lowering diesel prices, and refinery stocks came under broad pressure. Ali Najib, Deputy Head of Trading at Arif Habib Ltd, tied the weakness to expensive fuel and disruption in global energy markets.

Participation thinned as volume fell 24.14 per cent to 787.89 million shares and value dropped 22.02 per cent to Rs39.5bn. Cnergyico PK recorded the highest volume at 217mn shares, while Pakistan Petroleum, Pakistan Telecommunication Company, DG Khan Cement, International Steels and Fatima Fertiliser were the main gainers. According to the report, analysts foresee more volatility and profit-taking while geopolitical events and oil price swings keep steering the market.