Stocks end flat as absence of trigger keeps investors at bay

Stocks ended flat on Tuesday in range-bound trade as investors kept on the sidelines due to economic uncertainty and pressure in financial and cement blue-chip shares, dealers said.

Ahsan Mehanti from Arif Habib Corporation said stocks closed lower amid pressure in industrial and financial shares due to economic uncertainty and weak earnings outlook.

“Institutional profit-taking (was) witnessed amid dismal financial results in banking scrips. Mid-session support remained despite rupee stability, rising local cement prices, and upbeat data on cement sales for July 2018.”

Foreign outflows and concerns over Rs566 billion circular debt in the energy sector played a catalytic role in the negative close at the PSX, Mehanti added.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index shed 0.11 percent or 48.53 points to close at 42,760.13 points.

KSE-30 shares index shed 0.14 percent or 29.72 points to end at 21,150.02 points.

Of the 376 active scrips, 165 advanced, 197 declined, and 14 remained unchanged. The ready market volumes stood at 239.517 billion shares as compared with the turnover of 153.814 billion shares in the previous session.

Shumaila Badar, head of research at Ismail Iqbal Securities said the market was range-bound upon a lack of triggers. Selling pressure was witnessed in banks and buying pressure in cements because of valuations.

“We expect the market to continue to remain range-bound in the upcoming session,” Shumaila added.

Murtaza Jaffar from Elixir Securities said though trading started on a positive note, the index closed marginally low due to lack of triggers in the broader market.

“KSE-100 is likely to track political developments going forward as key government positions are expected to be decided in upcoming days,” he added.

Arif Habib in its report said major outburst was seen in the last hour when volumes increased significantly and investors were buying cement sector scrips like there was no tomorrow. Foreign selling pressure was evident in NBP, NML and oil scrips that prevented any significant uptick, the report added.

Companies reflecting highest gains included Nestle Pakistan, up Rs100.00 to close at Rs10,300.00/share, and Rafhan Maize, up Rs70.00 to close at Rs7,969.00/share.

The major losers were Colgate Palmolive, down Rs50.00 to end at Rs3,050.00/share, and Indus Dyeing, down Rs26.74 to close at Rs603.19/share.

The highest volumes were witnessed in Pakistan Elektron with a turnover of 16.244 million shares. The scrip gained Rs0.84 to close at Rs41.46/share. It was followed by Fauji Cement with a turnover of 16.103 million shares. The scrip gained Re1 to close at Rs25.96/share.

Engro Polymer witnessed the lowest volumes with a turnover of 9.719 million shares. Its scrip lost Rs0.96 to close at Rs34.45/share.