Stocks closed flat for the third consecutive day on Friday as investors remained on the side-lines ahead of the central bank’s monetary policy announcement, traders said.
Pakistan Stock Exchange (PSX) benchmark KSE 100-shares index inched up 0.08 percent or 33.08 points to close at 42,936.73 points against 42,903.65 points recorded in the last session. Intraday high was 43,117.28 points, while the lowest level of the day was recorded at 42,874.69 points.
Analyst Ahsan Mehanti of Arif Habib Corp said, “Stocks closed higher led by second and third-tier scrips on easing political noise and speculations ahead of SBP policy announcement.”
Surging global crude oil prices and government expectations for $13 billion in foreign aid for flood relief played a catalytic role in the positive close, he added.
However, mid-session pressure remained on likely increase in taxes ahead of the release of the next $1.2 billion International Monetary Fund ((MF) tranche, rupee instability and futures rollover week.
KSE-30 index also increased a slight 0.09 percent or 13.65 points to close at 15,818.76 points compared with 15,805.11 points recorded in the last session.
Traded shares increased by 24 million to end at 177.297 million shares compared to 153.126 million shares previously. Value rose to Rs6.053 billion from Rs5.861 billion. Market capital expanded to Rs6.854 trillion from Rs6.851 trillion. Out of 340 companies active in the session, 136 closed in green, 174 in red and 30 remained unchanged.
Analyst Nabeel Haroon at Topline Securities said lacklustre activity was observed at the exchange as investors preferred to remain on the side-lines before the monetary policy announcement.
A major contribution to the index came from Engri, Pakistan Services, UBL, Pakistan Oilfields, and Bank Al Habib as they cumulatively contributed 98 points to the index. On the flip side, Hubco, Lucky Cement, DG Khan Cement, Fatima Fertilizer, and Faisal Bank lost value to weigh down on the index by 77 points.
The highest increase was recorded in shares of Rafhan Maize, up Rs434.99 to close at Rs1,0085/share, followed by Sapphire Fiber, up Rs49 to close at Rs1,199/share. A significant decline was noted in the shares of Nestle Pakistan, down Rs76 to end at Rs5,766/share, followed by Sanofi-Aventis, down Rs49.89 to end at Rs1,050/share.
Arif Habib Ltd said the week concluded with another range-bound trading session at the PSX.
“The session began in the positive zone after the name of the new COAS was announced, providing much-needed clarity on the political ground,” it reported. “However, after the second session resumed, the index traded in a narrow range, drying up volumes as investors chose to remain on the side-lines in anticipation of today’s monetary policy announcement.”
Sectors contributing to the performance included fertilisers (+34.3 points), miscellaneous (+26.4 points), commercial banks (+21.9 points), E&Ps (+20.2 points) and food and personal care products (+6.9 points).
Hum NetworkXB remained the volume leader with 19.31 million shares. Its scrip went up 45 paisa to close at Rs6.14/share. It was followed by Dewan Motors with 12.25 million shares that closed up Re1.0 to Rs11.93/share.
Other stocks that recorded significant turnover included WorldCall Telecom, Hascol Petrol, Cnergyico PK, Lotte Chemical, TRG Pak Ltd, Hubco, Pak Refinery and Ghani Glo Hol.
Shares’ turnover in the future contracts increased to 216.489 million shares from 170.776 million shares.