Stocks close flat amid uncertainty over upcoming IMF review

KARACHI: The stock market displayed a mixed trend on Friday as the benchmark KSE-100 index closed almost flat, registering a modest gain of 22 points. Investor sentiment remained cautious amid prevailing uncertainty surrounding the upcoming IMF review scheduled for later this month.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index closed flat with an increase of 21.78 points, or 0.02 per cent, to 110,322.94 points, up from the 110,301.16 points recorded in the last session. The highest index of the day remained at 110,905.09 points, while the lowest level was recorded at 109,686.53 points.

Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks closed flat in the earning season at the PSX amid worries over the outcome of the IMF review later this month amid a tax collection shortfall and an overdue external debt.”

He said that surging foreign exchange reserves to $11.42 billion, and expectations over the further SBP policy easing played a catalyst role in the positive close at the PSX.

The KSE-30 index increased by 24.54 points or 0.07 per cent to 34,411.19 points against 35,386.65 points. Traded shares decreased by 299 million shares to 299.678 million shares from 598.93 million shares. The trading value dropped to Rs15.624 billion from Rs25.629 billion. Market capital lowered to Rs13.649 trillion against Rs13.654 trillion. Of the 446 companies active in the session, 144 closed in green, 228 in red, and 74 remained unchanged.

Analyst Muhammad Hasan Ather at JS Global said the KSE-100 index continued a mixed trend throughout the day, with continued selling pressure offsetting the intra-day high of 110,905 witnessed during the latter half. “Despite the bearish movement, the recent corrections put many stocks at an attractive price range, suggesting a reversal of the downward trend in the near future,” he said.

The highest increase was recorded in Rafhan Maize Products Company Limited, which rose by Rs148.17 to Rs9,500 per share, followed by Unilever Pakistan Foods Limited, which increased by Rs129.29 to Rs22,444.79 per share. A significant decline was noted in Service Industries Limited, which fell by Rs27.71 to Rs1,352.31 per share; Haleon Pakistan Limited followed it, which closed lower by Rs27.15 to Rs820.63 per share.

Brokerage Arif Habib Ltd stated that the KSE-100 index continued its downward trend, closing the week at 110k, marking a 3.4 percent week-on-week decline.

FX reserves rose by $46 million during the week ending January 31, reaching $11.4 billion. February trade activity saw the index dip below January’s lows and breach the prior five-week levels, signalling a shift in market sentiment.

Continued trade below 112k indicates a bearish bias, with the December low of 105k emerging as a possible target for the first quarter.

WorldCall Telecom remained the volume leader with 30.244 million shares, which closed higher by one paisa to Rs1.53 per share. Silk Bank Ltd, with 22.233 million shares, followed it, which closed lower by 12 paisas to Rs1.07 per share.

Other significant turnover stocks included K-Electric Ltd, BO Punjab, Cnergyico PK, Bank Makramah, Fauji Foods Ltd, Soneri Bank Ltd, Fauji Cement and Maple Leaf. In the futures market, 323 companies recorded trading, 112 of which increased, 206 decreased and 5 remained unchanged.