Stocks end flat on caution ahead of federal budget

Stocks ended flat on Thursday as positive sentiment from MSCI picked shares was offset by caution ahead of annual budget for the fiscal year 2017/18, dealers said. Stocks flat on Thursday, steadying after recent strength on MSCI’s picked stocks as investors positioned themselves for 2017/18 annual budget, dealers said.

They said investors, positioned themselves for the budget and opted to square their positions after a bullish spell throughout the week. Ali Raza at Elixir Securities said equities took a breather and closed flat after the benchmark KSE-100 index surged 4.2 percent in the last three consecutive sessions.

“Market started on a positive note, however stocks failed to carry momentum as profit-taking in blue-chip stocks (financials and oils) kept the market around its previous day close.”

The KSE-100 shares index shed 0.01 percent or 7.45 points to close at 52,869.01 points. KSE-30 shares index closed unchanged at 28,173.24 points. As many as 401 scrips were active of which 153 advanced, 237 declined and 11 remained unchanged.

The ready market volumes stood at 408.887 million shares as compared with the turnover of 606.693 million shares a day earlier. Ahsan Mehanti at Arif Habib Limited said stocks closed flat amid late session pressure in oil, banking and auto stocks on pre-budget uncertainty.

“Slump in global crude prices after OPEC extends output cut decisions and concerns for falling forex reserves on external payments played a catalytic role in bearish close in the futures contracts rollover session at the PSX.”

United Bank (down 2.4 percent), MCB Bank (2.2 percent) and Oil & Gas Development (down 1.2 percent) emerged as major laggards of the day and cumulatively dented index by near 130 points.

Pakistan State Oil (up 2.2 percent) however closed higher and churned most volumes since early February on reported institutional buying where positive news of company signing a fuel transportation agreement with Pakistan Railways also helped confidence.

Going forward, analysts see volatile market and relatively dull activity as participants, primarily local investors closely track budget related news flow.

Companies reflecting highest gains include Mari Petroleum up Rs63.50 to close at Rs1,732.33/share and Rafhan maize up Rs50 to close at Rs7,250/share.

Companies reflecting most losses include Exide Pakistan down Rs54.82 to close at Rs1,041.64/share and Murree Brewery down Rs20.61 to end at Rs769.39/share.

Highest volumes were witnessed in Power Cement (R) with a turnover of 46.744 million shares.

The scrip gained 14 paisas to close at Rs2.44/share. Bank of Punjab (R) was second with a turnover of 25.494 million shares. It shed 09 paisas to end at Rs1.78/share. Engro Polymer was third with a turnover of 22.96 million shares. It gained Rs1.52 to finish at Rs32.05/share.