Pakistan stocks end mixed on profit-taking

Pakistan stocks market closed flat on Tuesday with blue chips stocks, favoured by local investors, attracting the most trading volume while small and mid-sized sahres were the main drag on profit taking, dealers said.

Foreign investors remained net buyer for the second straight session. They bought shares (net) worth $3.61 million, reported National Clearing Company of Pakistan Limited.

 The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share index inched up 10.25 points, or 0.03 percent, to close at 33,032.85 points. This was the tenth consecutive postive close of the market. The benchmark index has cumulatively surged 2,468 points, or 8.07 percent, to date. KSE 30-share index was down 17.32 points, or 0.09 percent to close at at 19,583.10 points.

Volumes improved seven percent to 216.54 million shares from 203.11 million shares. Trading value lowered four percent to Rs11.47 billion. The market capitalisation enhanced Rs15 billion to Rs6.93 trillion.  Out of the total 354 active stocks, 192 closed down, 138 up and 24 remained unchanged.

Higher activity was seen at the bourse and was primarily led by net positive foreign flows over last two trading sessions,” Topline Securties said in a note. “Although benchmark index clocked in at an intra-day high of 33,211 (gaining 181 points), it closed almost flat.”

Ahsan Mehanti at Arif Habib Corporation said selling pressure witnessed on global stocks rout, government’s approval on an increase in Withholding Tax on banking transactions and deferral of auto policy.

“Upbeat cement dispatches data for February, renewed foreign interest in blue chip scrips and hopes for another cut in interest rate ahead the State Bank of Pakistan announcement for Monetary Policy Statement next week played a catalyst role in positive close at PSX,” he said.

Faisal Bilwani at Elixir Securities said Pakistan equities took a breather and closed almost flat on institutional led profit-taking.  Participation in the wider market remained upbeat with nearly $94 million worth of shares exchanging hands.

Stocks opened higher on buying in index heavy oils after higher international crude. But gains were soon trimmed on profit taking in Oil and Gas Development Company and Pakistan Petroleum Limited, both closed marginally up.

On the other hand, lagging fertilizers had a good day as sector traded higher on recovery in international urea prices with Fauji Fertilizer Company (gained 1.91 percent) and contributed most in the benchmark index. Moreover, Fauji Fertilizer Bin Qasim Limited closed at upper limit of five percent on optimism over early launch of company's meat business segment.

"We expect volatility to increase and investors will closely track foreign funds in days ahead while global commodity prices will keep industrial and oil stocks volatile,”  Bilwani said. “While financials are likely to gain traction and attract fresh flows on bets of possible rate hike in monetary policy during May (most expect status quo in March policy announcement)."  TRG Pakistan was volume leader with 25.31 million shares as it closed at Rs28.80. This was followed by Jahangir Siddiqui & Company with 21.28 million shares which closed at Rs22.67. Byco Petroleum Limited recorded trade in 11.06 million shares, as it closed at Rs17.96.