Market watch: Bourse ends flat in roller-coaster session

Benchmark KSE-100 index inches up 11.6 points to settle at 44,525.72

KARACHI:

Volatility prevailed at the Pakistan Stock Exchange on Thursday as the KSE-100 index endured a topsy-turvy session, ending the day with marginal gains.

Investors took cue from the jump in global energy prices, which led to mixed trading. While oil stocks shined on the back of crude prices inching closer to $120 per barrel, the cement sector came under selling pressure, driven by the spike in international coal rates.

On the domestic front, the widening of trade deficit in the first eight months of fiscal year 2021-22 dampened investor interest.

Earlier, trading began with a spike and the KSE-100 index remained in the green zone in first half of the session. Selling pressure emerged towards noon, which erased the gains and dragged the index down.

However, a buying spree, in the final minutes, helped wipe out the losses as the index closed with marginal increase.

At close, the benchmark KSE-100 index recorded an increase of 11.60 points, or 0.03%, to settle at 44,525.72 points.

A report of Arif Habib Limited stated that the market opened under pressure as inflationary concerns arose due to higher global oil prices and an overheated commodities’ price cycle.

“Cement sector stayed in the red zone due to mounting international coal prices,” it said. “Moreover, trade deficit widened by 82% in the first eight months (July-February) of current fiscal year 2021-22 and reached $31.959 billion compared to $17.535 billion in the same period of 2020-21.”

Mainboard activity remained dull. In the last trading hour, value buying was observed mainly in the exploration and production sector, it said.

JS Global analyst Mubashir Anis Naviwala said that the KSE-100 closed at 44,526, losing 12 points day-on-day, where panic selling was witnessed across the board due to lack of clarity on the geopolitical and economic fronts.

Traded volume stood at 189 million shares where TRG Pakistan (+0.5%), Oil and Gas Development Company (+2.1%), Fauji Cement (-0.3%), K-Electric (0%) and Telecard (+2.4%) were the volume leaders.

“Going forward, we recommend investors to remain cautious at current levels and wait before any fresh buying,” the analyst said.

Overall trading volumes dropped to 188.7 million shares compared with Wednesday’s tally of 235 million. The value of shares traded during the day was Rs7.4 billion.

Shares of 358 companies were traded. At the end of the day, 116 stocks closed higher, 209 declined and 33 remained unchanged.

TRG Pakistan was the volume leader with 15.1 million shares, gaining Rs0.41 to close at Rs79.13. It was followed by Oil and Gas Development Company with 11.7 million shares, gaining Rs1.99 to close at Rs94.98 and Fauji Cement with 8.9 million shares, losing Rs0.06 to close at Rs17.11.

Foreign institutional investors were net buyers of Rs221.4 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.