Market watch: Stocks close flat amid profit-taking

Benchmark KSE-100 index adds 26.03 points to settle at 43,928.08

KARACHI:

The Pakistan Stock Exchange managed to make some recovery on Tuesday, as sceptical investors were observed hunting for lucrative stocks, especially in cement and fertiliser sectors, amid a number of negative cues.

The benchmark KSE-100 index, after recording range-bound trading, added 26 points to close in the green zone.

The prevailing volatility on the political front amid persistently depreciating Pakistani rupee against the US dollar, which touched another record low at Rs185.23 in the inter-bank market, continued to haunt the trading environment.

Earlier, the session commenced with a fall as the benchmark index touched an intra-day low of 43,784 points in the initial hour of trading.

Later, owing to value buying, the market managed to post a rally as it touched an intra-day high of 44,290 points.

The second half, however, witnessed across-the-board profit-taking due to the negative cues. Yet, the index managed to end the day in the green zone.

At close, the benchmark KSE-100 index recorded an increase of 26.03 points, or 0.06%, to settle at 43,928.08 points.

Topline Securities, in its report, said that Pakistan equities closed on a slightly positive note where the benchmark KSE-100 index settled at 43,928.

A range-bound activity was witnessed over the uncertain political conditions. The market hit an intra-day high of 387 points, the report said, adding “however, the positivity could not be sustained due to profit-taking”.

Engro Polymer and Chemicals closed at its upper circuit (up 7.5%). Major positive contributors were Meezan Bank, Engro Fertilisers and MCB Bank, Topline said.

“On the other hand, profit-taking was witnessed in the cement sector, where Lucky Cement, DG Khan Cement and Pioneer Cement closed lower.”

A report of Arif Habib Limited stated that another volatile day was observed at the Pakistan Stock Exchange as the benchmark index opened in the negative zone due to political chaos and devaluation of the Pakistani rupee against the US dollar.

During the second hour of trading, value buying was observed, which led the KSE-100 index to the positive zone as a rally was witnessed in cement and fertiliser sectors, it said.

However, in the last trading hour, across-the-board profit-taking was witnessed.

Sectors contributing to the performance included banks (+49.9 points), chemicals (+41.6 points), fertiliser (+30.8 points), technology (+10.7 points) and investment banks (+9.5 points), the report said.

JS Global analyst Neelam Naz said that profit-taking continued across the board but the benchmark index managed to close in the green zone.

Despite the market touching an intra-day high of 388 points, it was unable to sustain the momentum owing to the selling pressure, she said.

Telecard Limited (+2.5%), TPL Properties (-2%), Engro Polymer and Chemicals (+7.5%), Ghani Global Holdings (-1.4%) and WorldCall Telecom (+0.6%) were the top contributors in terms of volumes.

“Going forward, we recommend investors to stay cautious,” the analyst said, adding “a buy-on-dip strategy is advised for value stocks”.

Overall trading volumes dropped to 115.6 million shares compared with Monday’s tally of 170.5 million. The value of shares traded during the day was Rs4.6 billion.

Shares of 302 companies were traded. At the end of the day, 154 stocks closed higher, 125 declined and 23 remained unchanged.

Telecard Limited was the volume leader with 12.9 million shares, gaining Rs0.35 to close at Rs14.21. It was followed by TPL Properties with 6.7 million shares, losing Rs0.38 to close at Rs18.88 and Engro Polymer with 6.5 million shares, gaining Rs5.06 to close at Rs72.64.

Foreign institutional investors were net buyers of Rs40.37 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.