Stocks end flat on lack of triggers

Stocks ended flat on Wednesday following range-bound movement amidst a lack of any significant triggers and lower volumes, traders said.

Pakistan Stock Exchange (PSX) benchmark KSE 100-shares index inched 0.11 percent lower or 48.32 points to close at 42,880.31 points against 42,928.63 points recorded in the last session.

Intraday high was 43,037.77 points while the lowest level of the day was recorded at 42,787.77 points.

Arif Habib Ltd in a post-market note said, “Market participation was comparatively lower than the previous session as volumes remained dry in the mainboard. However, decent volumes were recorded in the 3rd tier stocks.”

KSE-30 increased 0.11 percent or 17.43 points to end at 15,809.75 points compared with 15,792.32 points recorded in the last session.

Traded shares decreased by 57 million to end at 138.573 million shares from 195.973 million shares.

Trading value dropped to Rs5.140 billion from Rs6.789 billion. Market capital narrowed to Rs6.831 trillion from Rs6.836 trillion. Out of 356 companies active in the session, 144 closed in green, 191 in red and 21 remained unchanged.

Analyst Muhammad Arbash at Topline Securities said the market continued last session’s positive momentum.

However, profit-taking was witnessed soon after Hubco notified that China Power Hub Generation Company (CPHGC) had served it an encashment notice under a standby letter of credit (SBLC) that was worth $150 million.

Hubco as a joint venture partner and Pakistani sponsor of CPHGC had provided security in the form of SBLC in favour of CPHGC expiring on November 23.

“If the SBLC is not renewed 15 days prior to the expiry which is the case now, CPHGC’s lender shall have the right to call upon the SBLC. Which led the Hubco to close 3.63 percent down,” Arbash added.

During the session on Wednesday, the highest increase was recorded in the shares of Allawasaya Tex, up Rs194.99 to close at Rs2,794.87/share, followed by Sapphire Fiber, up Rs77 to close at Rs1,217.01/share.

Stocks that recorded the highest decline included Bata Pakistan, down Rs80 to end at Rs1,800/share, followed by Bhanero Tex, down Rs71.98 to end at Rs928.02/share.

Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks closed lower amid thin trade as investors weigh Nomura Holdings Inc warning on high risk over currency crises and 5-year CDS index hitting new highs of 123.88 on November 2022.”

Market also took cue from the postponement of Pakistan and International Monetary Fund (IMF) talks about the 9th review, falling exports and slump in global crude oil prices, which played a catalytic role in the bearish close, he added.

Sectors that contributed to the performance included power generation and distribution (-65.8 points), commercial banks (-19.8 points), miscellaneous (-18.5 points), cement (-10.9pts) and tobacco (-10.0pts).

WorldCall Telecom remained the volume leader with 16.467 million shares traded. Its scrip decreased by one paisa to Rs1.38/share.

It was followed by TPL Properties with 13.106 million shares that closed lower by 26 paisa to stand at Rs19.89/share.

Other stocks that recorded significant turnover included Hubco, Bankislami Pakistan, TRG Pak Ltd, Ghani Glo Hol, Hascol Petrol, Ghani Chemical, BO Punjab and Cnergyico PK.

Shares’ turnover in the future contracts decreased to 152.048 million shares from 210.996 million shares.