Market watch: Stocks close flat amid MSCI index review
Benchmark KSE-100 index loses 15.29 points to settle at 33,885.09
Benchmark KSE-100 index loses 15.29 points to settle at 33,885.09. PHOTO: FILE
KARACHI:
The stock market remained volatile on Tuesday as it oscillated between green and red zones and closed flat at 33,885 points.
The market kept fluctuating throughout the day after opening on a positive note. In line with expectation, Pakistan successfully retained its status in the MSCI Emerging Market Index, which helped create positive momentum in the stock market.
Fauji Fertiliser Bin Qasim (FFBL) and International Steels Limited (ISL) both touched their lower locks after their removal from the MSCI global small-cap index. The proposed tax amnesty scheme, which was approved later on Tuesday, also played a role in market's movement.
At the end of trading, the benchmark KSE 100-share Index recorded a decrease of 15.29 points, or 0.05%, to settle at 33,885.09.
JS Global analyst Maaz Mulla said movements in the benchmark index were like a see-saw as the bourse juggled between green and red, hitting an intra-day low of -209 points, followed by an intra-day high of +167 points. The market closed the day at 33,885, down 15 points.
He said the total volume was recorded at 106 million shares, down 13% from Monday. K-Electric (-1.5%), Unity Foods (-8.8%) and Maple Leaf Cement (-5%) led the volumes with trading in almost 20 million shares.
Major gainers of the day were Allied Bank Limited (+2.5%), Hubco (+2%), Bank AL Habib (+0.7%), Pakistan Petroleum Limited (PPL, +3.8%) and Pakistan Oilfields Limited (POL, +2.7%).
K-Electric (-1.5%), Sui Northern Gas Pipelines (-2.5%) and Fauji Fertiliser Company (-0.7%) were the major laggards.
The cement sector continued its declining trend where DG Khan Cement (-5%), Kohat Cement (-5%), Cherat Cement (-5%), Pioneer Cement (-5%) and Maple Leaf Cement (-5%) closed limit down.
Buying was witnessed in the exploration and production (E&P) sector as investors took the opportunity to accumulate stocks at attractive valuations, said the analyst. PPL (+3.8%), POL (+2.7%) and Oil and Gas Development Company (+0.9%) were the major movers of the sector.
"Moving forward, we expect the market to remain negative on the back of weak economic indicators. Hence, we recommend investors to remain cautious in trading," he added.
According to a report of Topline Securities, the approval of a tax amnesty scheme restricted intra-day losses at 209 points and the index closed flat at 33,885.
Cyclical stocks continued to feel the pinch amid anticipated slowdown in the economy going forward, the report stated.
Kohat Cement, Cherat Cement, DG Khan Cement, Pioneer Cement, International Steels and International Industries closed at their lower locks.
Most independent power producers (IPPs) moved up as the government was planning to eliminate circular debt by December 2020, it stated, adding a hike in power tariff would also ensure a smooth recovery of the cost from consumers.
Nishat Power, Nishat Chunian Power and Hubco gained 2-4% during the session.
Overall, trading volumes decreased to 105.7 million shares compared with Monday's tally of 121.2 million. The value of shares traded during the day was Rs4.3 billion.
Shares of 322 companies were traded. At the end of the day, 93 stocks closed higher, 205 declined and 24 remained unchanged.
K-Electric was the volume leader with 7.1 million shares, losing Rs0.06 to close at Rs3.92. It was followed by Unity Foods with 7.1 million shares, losing Rs0.95 to close at Rs9.8 and Maple Leaf Cement with 5.4 million shares, losing Rs1.15 to close at Rs21.93.
Foreign institutional investors were net sellers of Rs305.7 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.
The stock market remained volatile on Tuesday as it oscillated between green and red zones and closed flat at 33,885 points.
The market kept fluctuating throughout the day after opening on a positive note. In line with expectation, Pakistan successfully retained its status in the MSCI Emerging Market Index, which helped create positive momentum in the stock market.
Fauji Fertiliser Bin Qasim (FFBL) and International Steels Limited (ISL) both touched their lower locks after their removal from the MSCI global small-cap index. The proposed tax amnesty scheme, which was approved later on Tuesday, also played a role in market's movement.
At the end of trading, the benchmark KSE 100-share Index recorded a decrease of 15.29 points, or 0.05%, to settle at 33,885.09.
JS Global analyst Maaz Mulla said movements in the benchmark index were like a see-saw as the bourse juggled between green and red, hitting an intra-day low of -209 points, followed by an intra-day high of +167 points. The market closed the day at 33,885, down 15 points.
He said the total volume was recorded at 106 million shares, down 13% from Monday. K-Electric (-1.5%), Unity Foods (-8.8%) and Maple Leaf Cement (-5%) led the volumes with trading in almost 20 million shares.
Major gainers of the day were Allied Bank Limited (+2.5%), Hubco (+2%), Bank AL Habib (+0.7%), Pakistan Petroleum Limited (PPL, +3.8%) and Pakistan Oilfields Limited (POL, +2.7%).
K-Electric (-1.5%), Sui Northern Gas Pipelines (-2.5%) and Fauji Fertiliser Company (-0.7%) were the major laggards.
The cement sector continued its declining trend where DG Khan Cement (-5%), Kohat Cement (-5%), Cherat Cement (-5%), Pioneer Cement (-5%) and Maple Leaf Cement (-5%) closed limit down.
Buying was witnessed in the exploration and production (E&P) sector as investors took the opportunity to accumulate stocks at attractive valuations, said the analyst. PPL (+3.8%), POL (+2.7%) and Oil and Gas Development Company (+0.9%) were the major movers of the sector.
"Moving forward, we expect the market to remain negative on the back of weak economic indicators. Hence, we recommend investors to remain cautious in trading," he added.
According to a report of Topline Securities, the approval of a tax amnesty scheme restricted intra-day losses at 209 points and the index closed flat at 33,885.
Cyclical stocks continued to feel the pinch amid anticipated slowdown in the economy going forward, the report stated.
Kohat Cement, Cherat Cement, DG Khan Cement, Pioneer Cement, International Steels and International Industries closed at their lower locks.
Most independent power producers (IPPs) moved up as the government was planning to eliminate circular debt by December 2020, it stated, adding a hike in power tariff would also ensure a smooth recovery of the cost from consumers.
Nishat Power, Nishat Chunian Power and Hubco gained 2-4% during the session.
Overall, trading volumes decreased to 105.7 million shares compared with Monday's tally of 121.2 million. The value of shares traded during the day was Rs4.3 billion.
Shares of 322 companies were traded. At the end of the day, 93 stocks closed higher, 205 declined and 24 remained unchanged.
K-Electric was the volume leader with 7.1 million shares, losing Rs0.06 to close at Rs3.92. It was followed by Unity Foods with 7.1 million shares, losing Rs0.95 to close at Rs9.8 and Maple Leaf Cement with 5.4 million shares, losing Rs1.15 to close at Rs21.93.
Foreign institutional investors were net sellers of Rs305.7 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.