October 20, 2016Print : Business
Stocks ended flat in a volatile session on Wednesday as investors avoided risky bets ahead of an expected standoff between the government and opposition PTI party on Panama papers issue, dealers said.
Ali Raza, analyst at Elixir Securities, said index settled marginally lower as late value buying in select blue-chips and sideboards helped trimmed the morning losses. “After a brief positive start, the market plummeted as participants resorted to profits taking in fear of further correction,” Raza said.
The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index closed down 0.07 percent or 30.08 points to 40,924.14 points. The highest index of the day remained at 41,064.72 points, while the lowest level of the day was recorded at 40,668.82 points. KSE-30 Index also shed 21.13 points to close at 22,265.91 points.
Turnover increased by 124 million shares to 506.42 million shares, trading value fell to Rs12.45 billion from Rs13.11 billion, while market capital remained flat at Rs8.36 trillion. Out of 438 companies’ active in the session, 205 closed in green, 217 in red, while 16 remained unchanged.
The cement sector was the major laggard of the day as the sector was down around 2.37 percent on the back of rising global coal prices. Maple Leaf (down 4.02 percent) and Lucky Cement (down 1.69 percent) were the major index movers of the sector.
Nabeel Haroon, analyst at JS Research, said volatility prevailed in the market as the index traded between an intraday high of over 100 points and intraday low of minus 285 points to finally close on a flat note.
HUBC (down 2.36 percent) lost value for the second consecutive day on the back of announcement by the company that its joint venture company China Power Hub Generation Company (CPHGC) that is undertaking 2x660 MW coal based power plant is in discussion with the Government of Pakistan over improvement in Required Commercial Operation Date. In case of unfavorable outcome of the discussion project size could potentially be reduced to 1x660MW coal based power plant.
UBL (up 1.85 percent) gained to close in the green zone as the banking company declared better than expected result for its third quarter of current financial year.
In the refinery sector, NRL (down 3.06 percent) and ATRL (down 1.34 percent) were major losers, as both the refinery companies declared first quarter results were lower than the street estimates.
Highest increase was recorded in shares of Sapphire Textile, which rose by Rs48.86 to Rs1,026.14/share, followed by Ferozsons (Lab) XD that increased by Rs41.54 to Rs890.05/share. Major decline was noted in shares of Rafhan Maize, which fell by Rs100 to Rs7,700/share, followed by Khyber Tobacco that decreased by Rs42.46 to Rs826.99/share.
Significant turnover was recorded in stocks of Dost Steel (R), Bank of Punjab, Aisha Steel Mill, K-Electric Ltd, Engro Polymer, Sui Southern Gas Company Limited, Pace (Pak) Ltd, Nimir Resins, Dost Steels Ltd and TRG Pak Ltd.
Dost Steel (R) remained the volume leader with 135.95 million shares with a decrease of 69 paisas to Rs3.91/share. It was followed by Bank of Punjab with 65.48 million shares with an increase of 95 paisas to Rs17.45/share. Shares’ turnover in the future contracts fell to 54.87 million shares from 67.32 million shares traded in the previous session.