Stocks ended flat following choppy trade on Friday, as financial institutions sold positions on uncertainty over the Financial Action Task Force (FATF) outcome, and cement and auto shares resisted on strong results and expected increase in duties on car import, dealers said.
Analyst Ahsan Mehanti from Arif Habib Corporations said, “Stocks closed lower amid pressure on uncertainty over outcome of FATF review due later today, and fate of IMF negotiations with government for bailout package.”
Investors weigh upbeat data on current account deficit shrinking by 16.7 percent to $8.424 billion for July-January 2019. Political uncertainty, falling foreign reserves, and concerns over surging circular debt to over Rs1.5 trillion played a catalytic role in the bearish close, he added.
Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index lost 0.14 percent or 54.58 points to close at 40,016.13 points level. KSE-30 shares index followed suit with a low of 0.20 percent or 38.99 points to end at 19,289.96 points level. Of 313 active scrips, 132 moved up, 162 retreated, and 19 remained unchanged. The ready market volumes stood at 98.734 million shares, as compared with the turnover of 102.625 billion shares in the previous session.
Madiha Javed, head of research at Ismail Iqbal Securities, said the market remained choppy and directionless, as a result of announcements.
“Banking stocks were negative after full year result announcement with much higher than expected provisioning on international loan book by UBL driving the downward market sentiment,” she said.
Cements and E&Ps were up on strong corporate results, while auto stocks were up on speculations that duties on imported cars would be increased. Macroeconomic numbers released on Thursday showed an improving current account deficit, as stabilisation measures start to take impact.
According to an analyst, the market recorded a decline of more than 200 points, and touched the session low of 39,799 points. However, it made a recovery after fresh buying spurted in the choice scrips.
The sentiment was boosted further following the press conference of DG ISPR Major General Asif Ghafoor, in which he said, “we want peace in the region” and that Prime Minister Imran Khan too has forwarded an olive branch to improve ties.
Revenue Minister Hamad Azhar, while briefing media in Islamabad, said that within a week, the measures announced in the mini-budget would be passed through the National Assembly. This further boosted the market, particularly the auto sector.
Auto companies recorded appreciable gains ranging from Rs1 to Rs13.13/share on expectation that when the mini-budget passes, it would allow non-filers to buy 1300cc vehicles. The highest gainers were Indus Motor Company, up Rs21.43 to close at Rs1,297.17/share, and Thal Limited, up Rs14.38 to finish at Rs451.09/share.
Companies that booked highest losses were Pakistan Services, down Rs50.00 to close at Rs950.00/share, and EFU Life Assurance down Rs11.27 to close at Rs214.23/share.
Oil & Gas Development recorded the highest volumes with a turnover of 4.233 million shares. The scrip gained Rs1.18 to close at Rs154.19/share. The lowest volumes were witnessed in Bank of Punjab, recording a turnover of 7.351 million shares, whereas the scrip lost Rs0.07 to end at Rs13.36/share.