Stocks close flat amid range-bound trading

KSE-100 index edges up 15.33 points, settles at 78,863.34

KARACHI:

Pakistan Stock Exchange (PSX) displayed range-bound movement and closed flat on Thursday as weak economic numbers and delay in approval of an International Monetary Fund (IMF) loan programme weighed on investor interest.

The market exhibited considerable volatility, oscillating between the intra-day high of 79,154.30 and low of 78,578.02 points. Institutional investors resorted to profit-booking in blue-chip stocks.

Market players awaited the announcement of State Bank of Pakistan's (SBP) policy rate in the monetary policy to be unveiled on September 12.

They anticipate that the central bank will cut the rate further as inflation has eased. Already, the SBP has made a cumulative reduction of 250 basis points in the last two monetary policy meetings.

"Stocks closed flat due to institutional profit-taking in blue-chip shares," said Ahsan Mehanti, MD of Arif Habib Corp.

"Investor concerns about weak data of fertiliser and oil sales for August, coupled with uncertainty over the IMF's terms for securing a $7 billion loan, led to late-session pressure in the market," he said.

"Finance minister's affirmation of receiving external financing assurances, speculation about the SBP policy rate decision and upbeat data showing a 21% drop in August trade deficit were the catalysts for a slightly positive close at the PSX."

At close, the benchmark KSE-100 index recorded a meagre rise of 15.33 points, or 0.02%, and settled at 78,863.34.

Topline Securities, in its report, wrote that the KSE-100 index edged up by 15 points and saw considerable volatility throughout the session, reaching a high of 79,154 and low of 78,578.

Trading remained robust, largely fuelled by stocks of United Bank, Kohat Cement, MCB Bank, Habib Metropolitan Bank and Fauji Fertiliser, which together added 254 points to the index, Topline added.

Arif Habib Limited (AHL), in its commentary, noted that intra-day gains surpassed 79k, but the KSE-100 closed below that level. On the index, 35 shares rose while 63 fell.

Biggest contributors to the index were United Bank (+3.01%), Kohat Cement (+9.45%) and MCB Bank (+1.54%). Conversely, Mari Petroleum (-1.62%), Bank AL Habib (-1.44%) and Hub Power (-0.61%) were the largest drags.

Kohat Cement announced its FY24 results, where it reported earnings per share (EPS) of Rs45.41, representing a 53% year-on-year increase. For the fourth quarter, the EPS was Rs12.16, reflecting a fivefold rise compared to the same quarter of last year.

The company also revealed plans for the buyback of up to 12 million ordinary shares, which comprises 6% of the total outstanding shares and 20% of the free float. The buyback will commence on October 23.

"The KSE-100 is currently up 0.5% week-on-week while heading into the last session of the week. A close above 79k will trigger moves towards reaching 80k," AHL added.

JS Global analyst Mohammed Waqar Iqbal commented that the bourse witnessed a range-bound activity, with the KSE-100 closing at 78,863, up 15 points. Total traded value dropped to $51.3 million.

"The market awaits final approval from the IMF executive board. We expect range-bound activity to continue and recommend investors to take advantage of any downside as a buying opportunity in cement and textile sectors," the analyst added.

Overall trading volumes decreased to 770.5 million shares compared with Wednesday's tally of 969.8 million. The value of shares traded during the day was Rs14.3 billion.

Shares of 444 companies were traded. Of these, 148 stocks closed higher, 252 dropped and 44 remained unchanged.

WorldCall Telecom was the volume leader with trading in 87.1 million shares, losing Rs0.03 to close at Rs1.34. It was followed by Pace Pakistan with 66.6 million shares, gaining Re1 to close at Rs5.66 and Kohinoor Spinning Mills with 42.1 million shares, losing Rs1.12 to close at Rs10.29.

During the trading session, foreign investors bought shares worth Rs41.8 million, according to the NCCPL.