Stocks close flat amid lacklustre trade

Stocks ended flat on Monday as investors played cautiously; although institutional buying in the blue chips helped the Index in closing in positive territory, dealers said.

Analyst Ahsan Mehanti at Arif Habib Corp said stocks closed up on strong corporate results, foreign inflows and inclusion of some shares in FTSE global equity index series for Asia Pacific this year. 

“Strong cement, oil and fertiliser sales played a catalyst role in higher close,” Mehanti said.   Pakistan Stock Exchange’s benchmark KSE 100-share Index closed up 0.13 percent or 54.22 points to 42,841.41 points. 

The highest index of the day remained at 42,924.93 points, while the lowest level of the day was recorded at 42,489.69 points. KSE 30-share Index also increased 0.17 percent or 37.86 points to end at 22,017.44 points. Turnover fell 87 million shares to 113.78 million shares. Trading value also decreased to Rs7.49 billion from Rs13.13 billion while market capital expanded to Rs8.89 trillion from Rs8.87 trillion. Of 367 companies active in the session, 138 closed up, 213 ended down and 16 remained unchanged.

Elixir Securities, in a report, said the market traded in a narrow range before succumbing to profit taking midday, and later witnessed recovery on selective buying reportedly by foreign institutional investors.  “KSE 100 Index is expected to find resistance at 43,000 level and flows primarily from institutional investors are expected to guide market direction in days ahead,” the brokerage added. 

Fertiliser sector invited interest of investors on expectation of an earlier clearance of subsidy claims by the government. 

Fauji Fertilizer surged 5 percent, Fauji Fertilizer Bin Qasim rose 4.9 percent and Engro Fertilizer was up 4.7 percent.  Key sectors, including financial witnessed limited interest and closed lower. MCB Bank, however, increased 4.2 percent and weathered the general trend on reported foreign interest following FTSE rebal last Friday. 

Kohat Cement was down 5 percent after a poor final quarter result and finished at its respective lower price limit. 

Highest increase was recorded in Nestle Pakistan XD by Rs546.67 to end at Rs12,896.67/share, followed by Hinopak Motor that rose Rs35.25 to close at Rs1,115/share. Major decrease was noted in Bhanero Textile by Rs42.41 to close at Rs805.84/share, followed by Millat Tractors that fell Rs26.80 to end at Rs1,220.18/share.

Significant turnover was recorded in stocks of Dost Steels Ltd, TRG Pak Ltd, Engro Fertilizer XD, Attock Refinery, Aisha Steel Mill, Fauji Fertilizer XD, Kohinoor Spinning, WorldCall Telecom, Chakwal Spinning and Azgard Nine.

Dost Steels Ltd remained the volume leader with 10.80 million shares with an increase of 48 paisas to end at Rs12.59/share. It was followed by TRG Pak Ltd with 8.45 million shares with an increase of Rs1.04 to close at Rs39.67/share. Turnover in the future contracts fell to 34.57 million shares from 39.28 million shares traded in the previous session.