Stocks close flat in topsy-turvy session
PHOTO: FILE
Pakistan Stock Exchange (PSX) saw a tumultuous session on Wednesday as it opened on a positive note but failed to maintain the momentum due to profit-taking that pulled the KSE-100 index to an intra-day low of 41,542.32 points.
Prevailing volatility on the political front prevented market participants from taking fresh positions and the benchmark index lost ground.
During the day, the index touched an intra-day high of 41,873.91 points as stocks recovered partially owing to an increase in global crude oil prices. The index closed the day on a flat note, thanks to the lack of investor interest.
At close, the benchmark KSE-100 index recorded a slight increase of 23.32 points, or 0.06%, to settle at 41,737.62.
“It’s a range-bound day for Pakistan equities,” said Topline Securities in its report.
The KSE-100 index opened in the green and hit an intra-day high of 41,874 (+160 points; or 0.38%). However, short-term traders chose to book some profit, which took the index towards an intra-day low of 41,542 (-172 points; or 0.41%). It eventually settled at 41,738 (+23 points; or 0.06%) for the day, it said.
Banking, fertiliser, power and food-sector stocks contributed negatively to the index where Bank Alfalah, Dawood Hercules, Bank AL Habib, Hub Power and Nestle Pakistan lost a total of 72 points.
On the flip side, Systems Limited, Pakistan Services and Oil and Gas Development Company saw some buying interest as they added 136 points.
Over 146 million shares were traded while the total value came in at Rs3.9 billion. TPL Properties led the volumes chart with trading in 15.8 million shares, Topline added.
Arif Habib Limited, in its report, said that the PSX had a range-bound session. “The KSE-100 index fluctuated in a narrow range throughout the day after the market opened in the red and quickly created a thin range of trading both ways,” it said.
“Due to an unfavourable economic scenario and political instability, investors remained on the sidelines. Volumes in the main board dried up, though expectations of a gas price hike kept the exploration and production (E&P) sector in the limelight.”
The index closed at 41,737.62, up by 23.32 points (+0.06% day-on-day). Sectors contributing to the performance included technology and communications (+72.3 points), E&P (+40 points), miscellaneous (+39.7 points), textile composite (+7.2 points), and vanaspati and allied industries (+5.1 points).
Volumes increased from 144.8 million shares to 146.7 million (+1.3% day-on-day). Traded value increased by 4.2% to $17.4 million as against $16.7 million a day ago, the AHL report added.
JS Research analyst Muhammad Shuja Qureshi said that buying interest in selective blue-chip stocks helped the benchmark index close with gains of 23 points at 41,738.
“Investors are advised to adopt a cautious approach in the upcoming sessions as political temperature is expected to remain elevated,” the analyst said.
Overall trading volumes increased to 146.7 million shares compared with Tuesday’s tally of 144.8 million. The value of shares traded during the day was Rs3.9 billion.
Shares of 332 companies were traded. At the end of the day, 126 stocks closed higher, 186 declined and 20 remained unchanged.
TPL Properties was the volume leader with 15.8 million shares, gaining Rs0.27 to close at Rs19.70. It was followed by Unity Foods with 8.3 million shares, gaining Rs0.4 to close at Rs16.02 and Dewan Farooque Motors with 7.98 million shares, losing Rs1.24 to close at Rs16.46.
Foreign investors were net sellers of Rs11.8 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.