Stocks end flat, funds awaited
Stocks ended flat on Thursday albeit in the positive zone as investors pinned their hopes on mini-budget and likely hike in energy and power tariff to resume International Monetary Fund (IMF) programme, traders said.
Pakistan Stock Exchange (PSX) benchmark KSE 100-share Index went up 0.10 percent or 40.49 points to close at 38,831.59 points against 38,791.09 points recorded in the last session. Intraday high was 39,065.81 points, whereas intraday low was 38,731.15 points.
Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed higher as investors weighed upbeat data on current account deficit falling to $400 million in December 2022 shrinking by 78 percent YoY and government decision to reform for IMF deal.”
Positive expectations from the earnings season and SBP chief affirmation on deliberations on the opening of LCs, along with likely dollar inflows next week played a catalytic role in the positive close. However, mid-session pressure remained on FDIs at negative $17 million in December 20220, World Bank delays on $1.1 billion loans and rupee instability, Mehanti added.
KSE-30 index also increased by 51.73 points or 0.36 percent to 14,399.60 points compared with 14,347.87 points recorded in the last session.
Volumes increased by 4 million shares to 157.822 million shares from 153.090 million shares. Value rose to Rs6.406 billion from Rs5.010 billion. Market capital expanded to Rs6.179 trillion from Rs6.169 trillion. Out of 335 companies active in the session, 153 closed in green, 157 in red and 25 remained unchanged.
Muhammad Arbash, an analyst at Topline Securities, said equities continued buying momentum on the back of news flow regarding the likely announcement of a mini-budget and hike in electricity and gas tariff to resume IMF’s 9th review. Market remained mostly positive; however, profit-taking kicked-in in the last trading hours, compelled the index to settle at 38,832.
During the day, Pakistan Petroleum Limited, TRG, Oil and Gas Development Company (OGDC), Colgate and Sui Northern Gas Pipelines Limited (SNGPL) added 217 points, cumulatively. On the flip side, Lucky Cement, UBL and Engro saw some profit-taking as they lost 62 points collectively.
The highest increase was recorded in the shares of Bhanero Tex, up Rs75.69 to close at Rs1,095/share, followed by Colgate Palm, up Rs64 to close at Rs1,865/share. A significant decline was noted in the shares of Rafhan Maize, down Rs504.16 to end at Rs7,895.84/share, followed by Nestle Pakistan, down Rs48 to end at Rs5,260/share.
Brokerage Arif Habib Ltd said the PSX witnessed a positive session. The index opened in green and remained positive throughout, as investors adopted the strategy of value hunting on dips in anticipation of positive outcomes from the ongoing negotiations of the government’s finance team with the International Monetary Fund (IMF).
The E&P sector remained in limelight strengthening the bulls to secure their position and making an intraday high of 273 points as the market closed in the green zone. Healthy volumes were recorded across the board, it reported.
Sectors contributing to the performance included E&P’s (+116.9 points), technology and communication (+60.1 points), OMCs (+26.1 points), chemical (+11.8 points), and refinery (+6.2 points).
PPL remained the volume leader with 13.642 million shares. Its scrip increased by Rs4.22 to close at Rs74.08/share. It was followed by TRG Pak with 11.048 million shares that closed higher by Rs5.82 to Rs102.40/share.
Other stocks that recorded significant turnover included OGDC, SNGPL, Cnergyico PK, K-Electric, WorldCall Telecom, PRL, TPL Properties and Sui Southern Gas Company.
Shares’ turnover in the future contracts increased to 73.033 million shares from 54.221 million shares.
