Stocks closed almost unchanged on Monday as investors waited for any positive catalyst to spur buying interest amid worries over the country’s economic outlook and external financing needs.
The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index fell by 27.47 points or 0.06 percent to close at 46,393.68 points. The highest index of the day remained at 46,590.26 points while the lowest level was recorded at 46,305.88 points.
“Stocks closed lower on weak economic outlook amid concerns for external financing shortfall and government debt commitments,” said Ahsan Mehanti, an analyst at Arif Habib Corp. He said institutional support remained in oil and banking stocks on surging global crude oil prices and strong earnings outlook, while surging power tariff and uncertainty over privatisation of ailing state-owned enterprises played a catalytic role in bearish close.
The KSE-30 index also shed 41.60 points or 0.26 percent to close at 16,218.62 points. Traded shares increased by 23 million shares to 195.674 million shares from 172.894 million shares. The trading value dropped to Rs5.530 billion from Rs6.269 billion. Market capital expanded to Rs6.891 trillion against Rs6.873 trillion. Out of 326 companies active in the session, 168 closed in green, 134 in red and 24 remained unchanged.
Naveed Nadeem, an analyst at Topline Securities, said the market started the week on a positive note but failed to keep up the pace, eventually concluding the trading session at 46,393 points. “Investors displayed limited enthusiasm as they awaited any positive trigger.”
Major positive contributions to the index came from ILP, LUCK, PSEL, OGDC and TRG as they cumulatively contributed 78 points to the index, whereas MTL, HBL & SYS lost value to weigh down on the index by -99 points.
The highest increase was recorded in Pak Services, which rose by Rs25 to Rs750 per share, followed by Mehmood Tex., which increased by Rs24.23 to Rs518 per share. A significant decline was noted in Rafhan Maize, which fell by Rs177.33 to Rs7,866.67 per share, followed by J.D.W. Sugar, which decreased by Rs20 to Rs330 per share.
Brokerage Arif Habib Ltd. said sustaining the 46,000 points level in the market continued to be viewed as a constructive sign for the potential of additional gains this week. “In terms of individual stock movements, blue-chip stocks appeared subdued, with the most significant moves seen in other sectors,” it said in a note.
It said Pakistan International Airlines Corp. (PIAC) made a notable gain of 22.83 percent, driven by their efforts to hire an advisor for restructuring. JVDC rose by 7.5 percent following their FY23 PAT of PKR 8 billion and announcement of a Rs6 dividend per share. ILP also had a strong performance, nearing its all-time high of Rs50 (adjusted).
"As the week progresses, market participants are keeping an eye on potential moves towards the 46,900 points level, with a sense of anticipation regarding the upcoming general elections scheduled for January 2024." P.I.A.C. (A) remained the volume leader with 29.654 million shares which closed higher by Re1.0 to Rs5.38 per share. It was followed by Pak Elektron with 20.636 million shares, which closed higher by 73 paisas to Rs10.48 per share.
Other significant turnover stocks included Unity Foods Ltd, Hub Power Co., K-Electric Ltd., Dewan Motors, Pak Petroleum, Maple Leaf, Nishat Chun Pow and Bankislami Pak. Shares’ turnover in the future contracts increased to 180.916 million shares from 96.241 million shares.
