Stocks consolidate in futures rollover week

Stocks held ground on Wednesday as investors consolidated their position that prevented any extended rebound in the futures contracts’ rollover week, dealers said.

Ahsan Mehanti at Arif Habib Limited said pressure remained in blue-chip oil stocks amid concerns of foreign outflows, surging circular debt in the energy sector and dismal payouts in the earnings season.

“However, institutional support in banking, fertiliser and cement stocks supported the index to close above session lows.”

The Pakistan Stock Exchange benchmark KSE-100 shares index shed 0.07 percent or 33.44 points to close at 48,981.65 points. KSE-30 shares index gained 0.15 percent or 40.70 points to end at 26,553.57 points. As many as 430 scrips were active of which 95 advanced, 320 declined and 15 remained unchanged.

The ready market volumes stood at 379.901 million as compared to 343.120 million shares a day earlier.

Faisal Bilwani at Elixir Securities said market was marred by wild swings that in line with recent trend continued to test investors' nerves.

“Primarily MSCI EM stocks were leading the recovery in early trade but mood turned sour by mid-day on lack of interest and no serious buyers on screen that pulled market to tank by as much as 1.1 percent followed by another wave of rebound reportedly led by institutional buying with Index managing a close near 49K.”

Dealers said the worst continued for mid and small cap speculative plays as they witnessed most selling reportedly from jittery retail investors as the Court announced of giving a verdict on Thursday in ongoing Panama case while pressure from futures rollover further aided to investors misery.

K-Electric (KEL), down 1.6 percent, churned most volumes on reported selling from foreign institutional investors with local high net-worth investors increasing holdings over optimism on future outlook.

Going forward, analysts expect market to remain dicey and volatile with news flow from court proceedings will guide the market direction. Moreover, institutional flows, both local and foreign will also set the tone while limited participation from retail investors during the ongoing futures rollover week is anticipated.

Companies reflecting highest gains include Colgate Palmolive up by Rs38.6 to end at Rs1938.60/share and Atlas Battery up Rs33.67 to end at Rs975.67/share.

Companies reflecting highest losses include Rafhan Maize down Rs300 to Rs7550/share and Sanofi Aventis down Rs79.75 to end at Rs2470.25/share.

Highest volumes were witnessed in K-Electric Limited with a turnover of 56.829 million shares.

The scrip shed 16 paisas to close at Rs9.65/share. Aisha Steel was second with a turnover of 34.222 million shares. It shed Rs1.27 to end at Rs25.79/share. Power Cement was third with a turnover of 24.568 million shares. It shed 99 paisas to finish at Rs19.66/share.