Stocks end flat on profit-taking

Stocks ended flat on Thursday with investors opting for profit-taking with third-tier scrips leading volumes, traders said.

Pakistan Stock Exchange (PSX) benchmark KSE100-share index inched up 0.11 percent or 44.89 points to close at 42,393.52 points against 42,348.63 points recorded in the last session. Intraday high was 42,658.87 points, while the lowest level of the day was recorded at 42,348.63 points.

Analyst Muhammad Arbash at Topline Securities said Pakistan equities closed slightly positive. “Despite yesterday’s increase in secondary market yields and increase in international commodities prices, market opened on a positive note making an intraday high of 309 points,” he said. “However, this positivity didn’t sustain at the bourse and profit-taking was witnessed in the second half which led the market to close almost unchanged. Investors’ interest was mostly witnessed in HBL, Engro and SYS (Systems Limited).”

KSE-30 index also increased slightly by 31.88 points or 0.20 percent to stand at 15,664.04 points compared with 15,632.16 points recorded in the last session. Traded shares increased by 41 million to stand at 161.778 million shares from 120.196 million shares previously. Trading value rose to Rs4.687 billion from Rs4.657 billion. Market capital, however, narrowed to Rs6.766 trillion from Rs6.768 trillion. Out of 344 companies active in the session, 180 closed in green, 142 in red and 22 remained unchanged.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks showed recovery led by selected blue chip scrips on surging global equities and global crude oil prices.” Federal Board of Revenue (FBR) reaching revenue collection of Rs2.69 trillion in July-November 2022 and speculations over likely release of International Monetary Fund’s $1.18 billion tranche played a catalytic role in the positive close, he added.

The highest increase was recorded in the shares of Pak Services, up Rs46.91 to close at Rs801.62/share, followed by Thal Ind Corp, up Rs14 to close at Rs284/share. A significant decline was noted in the shares of Rafhan Maize, down Rs824.25 to end at Rs10,165.75/share, followed by Premium Tex, down Rs51.67 to end at Rs637.32/share.

Brokerage Arif Habib Ltd said a positive session was witnessed at the PSX continuing the acclamatory momentum from the previous close. “An increase in OMC margins facilitated the market participation on the higher side,” it reported. “The market opened in positive territory and made an intraday high of 309.76 points as investors elected for value angling in the main board. Healthy volumes were recorded across the board, whereas 3rd tier stocks remained volume leaders.”

Sectors contributing to the performance included commercial banks (+73.5 points), miscellaneous (+25.7 points), power generation and distribution (+19.8 points), oil and gas marketing companies (+10.6 points) and fertilisers (+5.6 points).

WorldCall Telecom remained the volume leader with 15.341 million shares that increased by 5 paisas to stand at Rs1.41/share. It was followed by Hascol Petrol with 12.137 million shares that closed higher by 16 paisas to end at Rs7.82/share.

Other stocks that recorded significant turnover included Ghani ChemicalXB, Nishat ChunPow, Habib Bank, Ghani Glo Hol, K-Electric, TRG Pak Ltd, Fauji Fertilizer Bin Qasim and Dewan Cement. Shares’ turnover in the future contracts increased to 23.563 million shares from 22.856 million shares.