Lull prevails as volume hits five-year low

Stocks managed to close up on Monday on buying in select blue-chips despite unenthusiastic participation that brought the volume down to five-year low, dealers said.

Elixir Securities, in a report, said equities closed in black after a choppy and range-bound trade as most participants were glued to their TV screens during the day to watch the Supreme Court’s proceedings on a case related to Prime Minister Nawaz Sharif and his family.

“Activity seen today (Monday) was lowest in the last five years as only 75 million shares exchanged hands,” the brokerage added. The ready market volume stood at 75.287 million shares as compared to 112.138 million shares a day earlier.

The KSE 100-share Index of Pakistan Stock Exchange (PSX) gained 0.42 percent or 185.77 points to close at 44,523.21 points. KSE 30-share Index rose 0.5 percent or 115 points to end at 23,217.10 points. As many as 355 shares were active; of which 177 increased, 161 decreased and 17 remained unchanged.

Dealers said lack of clarity on political situation mainly contributed to the lacklustre session as Sharif family filed objection against the final report of the joint investigation team (JIT), terming it biased and something going beyond mandate and pleaded the Supreme Court (SC) to annul it.

Panama Papers case has so far wiped more than 15 percent off the market to bring it down from its peak of 53,000 points. Lack of flows from both local and foreign institutional investors in the Index names saw most stocks struggling for direction and trading in narrow range.

Analyst Ahsan Mehanti at Arif Habib Corp said stocks closed marginally up amid thin trade, led by oil and banking shares on strong valuations. “Surging global crude prices and foreign inflows led the index to close higher in the corporate results announcement season,” Mehtani said.

With the court hearing again resuming Tuesday, analysts see thin trading with most investors keeping a close watch on proceedings and refraining from participating aggressively despite enticing valuations.

Companies, reflecting highest gains, included Rafhan Maize up Rs332.5 to close at Rs6,982.5/share and Unilever Foods that rose Rs199.94 to end at Rs5,800/share.

Companies, with most losses, included Phillip Morris Pakistan down Rs113.55 to end at Rs2,519.15/share and Colgate Palmolive that fell Rs45 to close at Rs2,355/share.

Highest volume was witnessed in K-Electric with a turnover of 5.683 million shares. Its stock value gained two paisa to close at Rs6.61/share. Engro Polymer was the second with a turnover of 4.587 million shares. It was up 44 paisas to end at Rs33.97/share. Dewan motors was the third with a turnover of 4.288 million shares.

It rose Rs1.75 to finish at Rs37.86/share.