Market watch: Stocks remain choppy amid MSCI review concerns

Benchmark index increases 55.95 points to settle at 41,152.28

KARACHI: The stock market had a lacklustre trading session on Tuesday amid macroeconomic concerns and possible removal of a couple of large-cap stocks from the MSCI Emerging Markets index in a review scheduled later in the day.

News about the return of Pakistan’s team from China without success in getting balance of payments support along with ongoing negotiations with the International Monetary Fund (IMF) kept the market under duress.

However, expectations that Lucky Cement may possibly not be excluded from the MSCI Emerging Markets large-cap category helped sparked a bullish frenzy in cement stocks.

At the end of trading, the benchmark KSE 100-share Index recorded an increase of 55.95 points or 0.14% to settle at 41,152.28.



JS Global analyst Maaz Mulla said the bourse closed slightly positive after another range bound session as the index hit intra-day low and high of -336 points and +160 points respectively, before closing up 56 points at 41,152.

“The market will likely remain similar to the outgoing week until any further developments are visible,” he said.

On the economic front, the IMF met with officials of the finance ministry and the Federal Board of Revenue (FBR) as initial discussions on the macro-economic framework and revenue measures were held for a new bailout package, he added.

Banking stocks closed higher as big banks boosted the index by 39 points. MCB Bank (+1.90%), United Bank (+0.03%), National Bank (+0.08%) and Bank Alfalah (+0.83%) closed higher.

Mixed sentiments were witnessed in cement stocks where Maple Leaf Cement (+1.24%) and Fauji Cement (+0.91%) rose whereas Kohat Cement (-1.47%), Cherat Cement (-1.05%), Dewan Cement (-1.43%) and Lucky Cement (-0.24%) remained in the red zone.

Car sales, including jeeps and pickups, went up 6% in October 2018, according to the latest data released by the Pakistan Automotive Manufacturers Association (Pama).

Pak Suzuki Motor Company (+2.07%) and Indus Motor (+0.21%) were major movers of the auto sector.

“Going forward, we expect the market to depict a similar trend, therefore recommend investors to see any downside as an opportunity to buy cement, consumer and banking stocks,” said the analyst.



Overall, trading volumes decreased to 177.17 million shares compared with Monday's tally of 178 million. The value of shares traded during the day was Rs6.86 billion.

Shares of 362 companies were traded. At the end of the day, 159 stocks closed higher, 179 declined and 24 remained unchanged.

Lotte Chemical XD was the volume leader with 21.85 million shares, gaining Re1 to close at Rs19.1. It was followed by TRG Pakistan with 17.75 million shares, gaining Rs0.78 to close at Rs31.95 and Pakistan International Bulk Terminal with 12.83 million shares, gaining Rs0.17 to close at Rs12.41.

Foreign institutional investors were net sellers of Rs21.65 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.