Stocks closed flat on Thursday as investors remained on the sidelines with selling pressures sustained by blue-chips, including cement and fertiliser shares, dealers said.
“Stocks closed lower amid pressure in shares across the board on investor worries over rising fiscal and current account deficits,” Ahsan Mehanti, chief executive at Arif Habib Commodities said.
Mehanti said a rise in global crude oil prices invited midsession support in oil shares. “The pre-budget uncertainty, dismal financial results, rupee depreciation and concerns over pending circular debt, (however), played a catalyst role in bearish close.”
Pakistan Stock Exchange’s benchmark KSE-100 shares index shed 0.20 percent or 90.86 points to close at 45,387.77 points. KSE-30 shares index fell 0.24 percent or 54.82 points to end at 22,489.74 points.
As many as 382 shares were active; of which 100 advanced and 262 declined, whereas 20 remain unchanged. The ready market volumes stood at 183.362 million shares as compared to the turnover of 156.038 million shares a day earlier.
Brokerage BIPL Securities said stocks declined as lack of triggers in the near-term kept the market participation subdued. Cement sector was affected on news of Rs15/bag decline in cement prices in the north region. Selling pressure continued in banks as foreign sell-off continued in the sector during the third consecutive day.
“Uncertainty over kind of exemption and changes in tax slabs that would be announced in the budget forced the investors to adopt wait and see approach,” Zeeshan Afzal, head of research at Insight Securities said. Afzal said cement sector was on the losing track on reports that southern players are expecting intense price competition in coming months amid low demand and cement price may go down.
Nauman Khan, head of Research at Foundation Securities said market remained in the grip of panic selling given uncertain macro and political environment.
Major pressure was seen in banks, whereas oil and gas provided some respite. Energy sector gained momentum as international oil prices appreciated to clock in at $68.83/bbl. Analysts said market will remain in the consolidation phase given that the budget is due next week. Furthermore political clarity is a must before an affirmative move. Companies with the highest gains included Pak Tobacco, up Rs95.00 to close at Rs2,045/share, and Bata Pakistan, up Rs60 to end at Rs2,810/share.
Companies with the most losses were Shezan International, down Rs 27.80 to close at Rs528.60/share, and Indus Dyeing, down Rs 23.52 to close at Rs447.09/share.
Highest volumes were witnessed in BO Punjab with a turnover of 13.63 million shares. The share gained 23 paisas to close at Rs9.77/share. Lowest volumes were witnessed in Engro Polymer with a turnover of 15.20 million shares. The share lost 43 paisas to close at Rs38.45/share.