Stocks end flat as fiscal year comes to an end

Benchmark KSE 100-share index edges down 3.03 points

KARACHI: The index witnessed lethargic trading, ending the fiscal year on a flattish note and registering a fall of just 3.03 points as the holiday mood kicked in.

At close on Thursday, the Pakistan Stock Exchange’s (PSX) benchmark-100 index registered a decline of 0.01% to end at 37,783.54.

Elixir Securities analyst Ali Raza said equities closed the last day of the week and fiscal year 2016 unchanged after benchmark KSE100 failed to sustain its recent positive momentum and erased all intra-day gains on profit-booking.



“Activity was considerably lower as turnover shrank by 30% as holiday mood sets in,” said Raza.

“Stocks opened the day higher with select financials, cements and exploration and production leading the early gains, however, profit-taking on thin volumes resulted in KSE100 index narrowly missing the 38,000 mark and skidding lower.

“Profit taking was also seen in small and midcap speculative plays as retail investors traded cautiously and preferred to close their positions ahead of long holidays.”

JS Global analyst Arhum Ghous said lackluster activity was witnessed at the bourse as the index traded between an intraday high of +208 points and intraday low of -56 to finally close on a flattish note (-0.01%).

“Investor interest was seen in the textile sector on the back of the news that government is likely to issue SRO today on zero-rated regime for export-oriented sectors,” said Ghous.



“Major gainers of the aforementioned sector were Nishat Mills Limited (0.62%) and Kohinoor Textile Mills Ltd (2.22%). Pakistan State Oil (0.71%) and Shell (1.02%) in the OMC sector gained, as OGRA on Wednesday recommended the government to increase the prices of petroleum products by Rs1.93 to Rs8.62 per liter in July.”

Ghous said that in the E&P sector OGDC (-1.20%), PPL (-1.23%) and POL (-0.43%) lost value to close in the red zone, as crude oil prices declined in the commodity markets.

Trade volumes decreased to 115 million shares compared with Wednesday’s tally of 134 million.

Shares of 337 companies were traded. At the end of the day, 166 stocks closed higher, 150 declined while 21 remained unchanged. The value of shares traded during the day was Rs7.3 billion.

K-Electric was the volume leader with 22 million shares, losing Rs0.03 to finish at Rs8.06. It was followed by Sui Northern Gas 8 million shares, remaining unchanged at Rs36.29 and TRG Pakistan Limited with 5.8 million shares, losing Rs0.74 to close at Rs33.55.

Foreign institutional investors were net buyers of Rs374 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, July 1^st, 2016.

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