Stocks ended flat after clawing back early losses as record high world commodity and crude oil prices raised questions over the economy’s ability to withstand more shocks amid another virus spike, traders said.
Pakistan Stock Exchange's (PSX) benchmark KSE-100 Shares Index nudged lower by 7.46 points or 0.02 percent to 44,825.97 points, after swinging between a high of 44, 874.98 points and a low of 44,274.31 points.
Investors are mostly playing safe as the country has detected 6,808 new infections in the last 24 hours, up 19.6 percent from Wednesday, marking the second-highest daily caseload since the start of the pandemic in February, according to a post-market note by Darson Research.
Moreover, the brokerage said factors like lack of upbeat triggers and increasing crude oil and commodity prices amid higher import bill and current account deficit kept investors at bay.
KSE-30 Shares Index that mostly follows the benchmark’s trend ended barely changed gaining 14.02 points or 0.08 percent to close at 17,665.79 points.
Zafar Moti, former director PSX, said the market opened with Wednesday’s depression as selling pressure continued without a respite.
However, he said, there was redemption in one stock. Moreover, supply side was higher and demand was lower, he said adding that however buying started in the last hours and volumes started improving, which changed the market mode.
“Almost all scripts have seen buying orders and the market is expected to move up on Friday.”
Moti added that Asad Umar’s tweet regarding an improvement in GDP also helped boost investor morale.
“While people are saying that MPS (Monetary Policy Statement) will remain unchanged on the January 24 review, but my personal point of view is that the central bank was highly likely to raise policy rate by 50 basis points,” he said.
Asad Umar, Federal Minister for Planning, Development, and Special Initiatives, on Thursday claimed that despite being hit by Covid-19, Pakistan’s economy witnessed record growth.
Volumes swelled by 18 million shares to 254.20 million from 236.93 million, while traded value eased to Rs7.73 billion from Rs8.66 billion.
Market capital was also flat at Rs7.700 trillion compared to Rs7.703 trillion recorded in the last session.
Among active scrips, 169 were gainers, 158 losers, while 21 ended neutral.
Topline Securities in a note said equities extended Wednesday’s selling spree and benchmark index lost 558 points or 1.25 percent in intraday trade to end hardly changed in the end.
However, the brokerage said, value hunting resumed at the aforesaid level, which helped the market to gain some ground.
Power, exploration and production, technology, and banking stocks supported the market.
KAPCO, PPL, MLCF, AVN, and BAHL cumulatively added 81 points, while TRG, ENGRO, and DAWH together eroded 113 points from the index.
Sapphire Fiber led the gainers chart, rising Rs63 to Rs913 per share, followed by Siemens Pakistan, jumping Rs17.16 to Rs638.16 per share. Nestle Pakistan, being the loss leader, fell Rs100 to Rs5,400 per share, while Sapphire Textile, the second most hit name, dropped Rs84 to Rs1,040 per share.
JS Research in its market wrap said the benchmark index mainly recovered after making a low of 44,275 as buying was witnessed in heavyweights such as KAPCO, HBL, BAHL, and PPL later in the session.
“Going forward, we recommend investors to book profits in the range of 45,000 to 45,300 points and wait for the dust to settle before taking further buying positions,” the brokerage said.
WorldCall Telecom was the highest traded stock with 27.94 million shares, trailed by Cnergyico PK with 18.84 million shares.
Stocks that recorded significant turnover included Ghani Global Holdings, Telecard Limited, K-Electric Ltd, Jahangir Siddiqui Co, TRG Pakistan Ltd, Unity Foods Ltd, Treet Corp, and Hascol Petrol. Turnover in the future contracts grew to 85.48 million shares from 75.33 million shares.