Pakistan stocks end flat in range-bound trade

Stocks closed largely flat on Wednesday amid ranged-bound trade, and gains in second tier shares were offset by losses in energy scrips, dealers said. They said the Pakistan stock exchange (PSX) witnessed a range-bound session as the index after moving in the range of 190 points closed almost flat in the absence of triggers.

Ahsan Mehanti at Arif Habib Commodities said stocks closed flat amid late session pressure in oil stocks after fall in global crude prices and concerns for major fall in global equities. “Investor interest in second and third tier stocks in engineering, cement and auto sectors supported the index to close above session lows,” Mehanti said. “Concerns for leverage issues and uncertainty over outcome of Panamagate case hearings played a catalytic role in bearish activity.” The benchmark KSE-100 shares index shed 0.01 percent or 3.42 points to close at 49,016.79 points. KSE-30 shares index shed 0.14 points or 37.08 points to end at 26,212.52 points. As many as 410 scrips were active of which 213 advanced, 183 declined and 14 remained unchanged.

The ready market volumes stood at 317.794 million as compared to 225.178 million shares a day earlier. ARham Ghous at JS Global said the market opened on a positive note, maintaining its previous session trend, while the index traded at an intraday high of +127 points before making an intraday low of -59 points, finally closing at 49,017 levels.

“K-Electric (KEL) closed in the red on news from NEPRA (National Electric Power Regulatory Authority) announcing a 7-year tariff for KEL, slashing average tariffs by Rs3.50/unit i.e. 23 percent”.

Moreover, oil prices slipped back to three-month lows after data showed faster-than-expected rise in US crude inventories, piling pressure on OPEC to extend output cuts beyond June. Pakistan Petroleum, down 0.45 percent, was the major laggard in E&Ps. Pak Elektron closed 2.44 percent positive as the NTDC is upgrading transmission of power system in different parts of the country as per need and load of consumers. By end of 2018, it is expected to achieve the target of transmitting 30,000MW. Mixed sentiment was witnessed in pharmaceuticals stocks where GLAXO down 1.72 percent and ABOT down 0.21 percent closed in the red zone as National Accountability Bureau (NAB) has begun an inquiry into recent drug price hikes, sale of unregistered stents at high prices and absence of medicine records. Companies reflecting highest gains include Wyeth Pakistan up by Rs143.16 to end at Rs3006.47/share and Millat Tractors up Rs58.19 to end at Rs1287.18/share. Companies reflecting highest losses include Rafhan Maize down Rs100 to Rs7600/share and Unilever Foods down Rs85 to end at Rs6110/share.

Highest volumes were witnessed in K-Electric with a turnover of 50.079 million shares. The scrip shed 46 paisas to close at Rs8.41/share. Bank of Punjab was second with a turnover of 29.132 million shares. It gained Rs1.0 to end at Rs17.27/share. Azgard Nine was third with a turnover of 22.914 million shares. It gained 82 paisas to finish at Rs11.33/share.