Stocks end three-day losing streak, finish nearly flat

Benchmark index increases 4.80 points to settle at 41,903.50

KARACHI: The benchmark KSE-100 index finally snapped its three-day losing streak on Thursday as it managed to pare losses and close in green albeit on a flattish note.

The KSE-100 tumbled from the moment trading began, losing around 350 points in intra-day trading. Fortunately, turnaround was quick and index changed gears led by buying activity in banking and cement stock.

The index oscillated between the red and green zones amid investors weighing strong financial results and reports of Pakistan’s likely exclusion from the Financial Action Task Force’s (FATF) grey list to be reviewed in Paris next month. The government’s decision to delay proposed gas tariffs also helped improve investors’ sentiments.

The lacklustre activity in the bourse was partly due to dip in oil prices as coronavirus death toll rises above 170 and selling pressure stemming from foreign corps in rollover week.

At close, the benchmark KSE-100 index recorded an increase of 4.80 points, or 0.01%, to settle at 41,903.50.

In its report, Arif Habib Limited stated that the market dipped again by 351 points during the session, but staged a recovery and closed the session 4.80 points.

“Lucky Cement’s (LUCK) result at the opening bell, brought some relief to sellers in the past couple of sessions in which LUCK came down from Rs500. Its price rebounded after touching the day’s low of Rs468.80 and closed Rs484.50.”

The cement sector largely traded positive, same as fertiliser sector stocks. Oil chain and the banking sector again faced selling pressure almost across the board, the report added.

JS Global analyst Maaz Mulla stated that the swing effect continued in the market where the benchmark index juggled between the green and red zone. The KSE-100 index made an intra-day low and high of 351 and 84 points, respectively.

“LUCK (+2.4%) from the cement sector declared its result for the first half for FY2019-20, in which the company posted their earnings per share of Rs5.99,” said Mulla.

“Moving forward, we recommend investors to stay cautious and accumulate value plays, mainly in banks, textiles, energy and power on further dips,” he added.

Overall, trading volumes decreased to 162.2 million shares compared with Wednesday's tally of 197.1 million. The value of shares traded during the day was Rs6.8 billion.

Shares of 349 companies were traded. At the end of the day, 193 stocks closed higher, 136 declined and 20 remained unchanged.

Bank of Punjab was the volume leader with 17.9 million shares, gaining Rs0.23 to close at Rs13.45. It was followed by Avanceon Limited with 15.9 million shares, gaining Rs2.10 to close at Rs40.45 and Unity Foods with 10 million shares, losing Rs0.08 to close at Rs13.84.

Foreign institutional investors were net sellers of Rs277.99 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.