Benchmark index rises 63.5 points to settle at 35,128.58. PHOTO: AFP
Owing to mixed investor sentiment before the budget announcement, scheduled for Friday, and with the unveiling of Economic Survey 2019-20, the market traded in both directions where some investors resorted to profit-booking while others cherry-picked stocks.
Oil sector stocks came under selling pressure following a dip in global crude oil prices.
Earlier, stock trading kicked off with a spike and the index climbed in initial hours, however, selling pressure emerged later and wiped out the gains by noon. The index managed to climb in the second half again with investors making fresh investment due to positivity over the budget for 2020-21.
At close, the benchmark KSE-100 index recorded an increase of 63.50 points, or 0.18%, to settle at 35,128.58.
JS Global analyst Danish Ladhani said the KSE-100 index closed on a flat note, gaining only 63 points at 35,128.
"The market remained positive but some profit-taking was noted following a pre-budget rally," the analyst said. "Fertiliser stocks were the major performers whereas financial and exploration and production stocks were the major laggards."
Second-tier and third-tier stocks performed well with significant trading volumes. Engro (+1%), Fauji Fertiliser (+1.5%), Hubco (+0.2%) and Lucky Cement (+1.8%) were the index movers.
Traded value stood at $53 million, up 9% and volumes came in at 271 million shares, up 24%. Major contribution to the total market volumes came from Power Cement (+4.6%), TRG Pakistan (-0.5%), Unity Foods (+1.2%), Engro Polymer (+1.2%) and Maple Leaf Cement (+2%).
"Going forward, we expect the market to remain range bound and recommend investors to sell on strength ahead of budget announcement," the analyst said.
Overall, trading volumes increased to 270.6 million shares compared with Wednesday's tally of 218.7 million. The value of shares traded during the day was Rs8.67 billion.
Shares of 371 companies were traded. At the end of the day, 210 stocks closed higher, 131 declined and 30 remained unchanged.
Power Cement was the volume leader with 19.2 million shares, gaining Rs0.28 to close at Rs6.35. It was followed by TRG Pakistan with 14.6 million shares, losing Rs0.14 to close at Rs28.42 and Unity Foods with 10.8 million shares, gaining Rs0.15 to close at Rs12.99.
Foreign institutional investors were net sellers of Rs281.3 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.
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