Stocks end flat amid lack of triggers

Stocks closed flat with thin trade on Friday as investors stayed away from taking fresh position on political noise, while the start of Muharram also sent participants in a snooze mood, dealers said.

Analyst Ahsan Mehanti at Arif Habib Corp said stocks closed lower on concerns over political and economic uncertainty. “Institutional support remained in the selected oil, auto and banking stocks on strong financial results,” Mehanti added. “However, trade deficit rising to $6.3 billion in two months, weak global crude prices, rising public debt and surging current account deficit played a catalytic role in bearish close.”

The KSE 100-share Index of Pakistan Stock Exchange shed 0.06 percent or 24.84 points to close at 42,750.20 points. KSE 30-share Index fell 0.13 percent or 28.31 points to end at 21,881.04 points. As many as 388 shares were active; of which 178 increased, 184 decreased and 26 remained unchanged.

The ready market volumes stood at 132 million shares as compared to 165.709 million shares a day earlier. Elixir Securities, in a report, said equities closed a little changed in sluggish and range-bound trade. 

“Stocks opened negative and the benchmark Index traded in a narrow range throughout the day as most investors traded cautiously amid dearth of positive triggers in sight and rising noise on domestic political front,” the brokerage added. Wider market activity also took a plunge as evident from the turnover on KSE All Index that just clocked below $52 million, down 44 percent from this week’s average.

Fauji Fertilizer (down 3.4 percent), Sui Northern Gas Co (dropping 2.6 percent) and Pakistan Petroleum (falling 1.1 percent) stood among the top losers and dented the Index by 70 points. Index heavy United Bank (up 2 percent) and MCB Bank (rising 1.3 percent) stood strong and landed among top gainers.

Analysts expect a range-bound trading in near-term with most investors cautiously trading and waiting for political dust to settle on. They see wider market activity getting lower and sporadic owing to start of Muharram. Companies, reflecting the highest gains, included Hinopak Motor up Rs29.72 to close at Rs1,121.55/share and Atlas Honda that rose Rs22.48 to end at Rs542.49/share. Companies, with most losses, included Murree Brewery down Rs40.10 to end at Rs764.85/share and Indus Dyeing that fell Rs26.24 to close at Rs499.11/share.

Highest volumes were witnessed in Worldcall Telecom with a turnover of 17.584 million shares. Its stock value gained nine paisas to close at Rs3.52/share. Engro Polymer was the second with a turnover of 8.924 million shares. Its share price rose Re1 to end at Rs34.01/share. K-Electric was the third with a turnover of 6.78 million shares. It increased three paisas to finish at Rs6.27/share.