Stocks end flat as investors shed weak holdings

Stocks on Wednesday ended almost flat after a rollercoaster session, as investors offloaded their weak holdings in a lackluster trade, dealers said.   

“Equities closed a little changed after trading volatile as gains in the select industrials and consumer plays were offset by losses in oil, financial and fertiliser sectors,” said Ali Raza, analyst at Elixir Securities.

The KSE 100-share Index of the Pakistan Stock Exchange shed 0.07 percent or 36.44 points to close at 48,642.21 points.

KSE 30-share Index fell 0.58 percent or 152.95 points to end at 26,186.92 points. As many as 427 scrips were active; of which 241 increased, 192 decreased and 21 remained unchanged.

The ready market volumes stood at 330.624 million as compared to 379.653 million shares a day earlier.

Day kicked off on a positive note and stocks inched up on local value buying. However, the market pared gains mid-day on profit-taking and on reports of aggressive foreign selling.

Oil and Gas Development Company (OGDCL) was down 4.9 percent. The company tested the lower price limit intra-day on reports that the government might divest up to five percent of shareholding in the company.

Pak Electron hit the upper price limit and churned top volumes of the day – most since July 2016. The company closed at high since August of 2015 on a reported institutional interest.

Analyst Fahad Qasim at Topline Securities said the Index declined amid foreign selling in heavy weights. “Subdued interest was in the banking sector as most of the financials closed in red,” Qasim said.

Analysts see volatile trading to continue with the benchmark 100-share Index trading in a range of 300 and 400 points. However, the excitement may pick up ahead of a ceremony of PSX stake-sale to the Chinese consortium. 

Moreover, earnings and payout-led buying is likely to counter headwinds from the domestic politics.

Companies, reflecting highest gains, include Pakistan Tobacco, up Rs63.05 to end at Rs1,325.85/share, followed by Ghandhara Industries. Its share price rose Rs51.32 to end at Rs1,077.78/share.

Companies, reflecting highest losses, include Sanofi Aventis, down Rs45.50 to Rs2,722/share, followed by Service Industries. Its share value fell Rs33.95 to end at Rs1,506.30/share.

Highest volumes were witnessed in Pak Elektron with a turnover of 19.756 million shares. The scrip gained Rs3.72 to close at Rs78.28/share. Bank of Punjab was second with a turnover of 19.342 million shares. It inched up 40 paisas to end at Rs17.78/share. OGDC was the third with a turnover of 12.504 million shares. It shed Rs8.04 to finish at Rs157.81/share.