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Friday March 29, 2024

Stocks end flat; cement, auto shares bounce

By our correspondents
October 19, 2017

Stocks closed flat on Wednesday as cement and energy shares bounced from sharp losses in previous sessions and institutional investors supported the market on better than expected quarterly earnings, dealers said.

The Pakistan Stock Exchange benchmark KSE-100 shares index gained 0.02 percent or 8.49 points to close at 40,733.45 points. KSE-30 shares index gained 0.30 percent or 62.98 points to close at 20,742.40 points. As many as 370 scrips were active of which 121 advanced, 229 declined and 20 remained unchanged.

The ready market volumes stood at 138.115 million shares as compared with the turnover of 166.837 million shares a day earlier. “Equities ended flat as investors remained muddled over the likely impact of additional regulatory duties on non-essential items to curb the burgeoning trade deficit – with some calling it a not-so-effective move,” Topline Securities said in its post market comment.

Analyst Ahsan Mehanti at Arif Habib Corp said institutional interest was witnessed in the late session “on rising local cement prices, strong quarter-end earning announcements and higher global crude prices”.

“Levy of higher regulatory duties supporting auto stocks also supported the index.” An analyst at Elixir Securities said equities remained steady after recouping losses on late buying in index names, primarily cement stocks.

“Day kicked off and traded dull with benchmark index on a steady sinking path on anxiety over domestic politics and no major interest,” the analyst said. “DGKC (up 3.5 percent) surprise earnings turned the tide and helped swing the mood with Lucky Cement (up 4.2 percent) also attracting fresh flows and hitting upper price limit intraday.”

Investors welcomed the fresh wave with near half the turnover going through on exchange in last 30 minutes of trading and wider market pushing higher with momentum and trading green at closing bell.

Analyst said key earnings announcements may attract selective attention and investors will keenly follow court proceedings against former prime minister Nawaz Shariff.  Sharif is likely be indicted on corruption charges - a move that will keep domestic politics in limelight in days ahead.

Companies reflecting highest gains include Khyber Tobacco up Rs61.9 to close at Rs13,00.09/share and Lucky Cement up Rs21.24 to close at Rs522.23/share. Companies reflecting most losses include Nestle Pakistan down Rs500 to close at Rs12,000/share and Thal Limited down Rs22.42 to end at Rs516.08/share.

Highest volumes were witnessed in Engro Polymer with a turnover of 21.286 million shares. The scrip gained Rs1.58 to close at Rs34.33/share.

Azgard Nine was second with a turnover of 8.9 million shares. It shed 19 paisas to close at Rs12.53/share. Aisha Steel Mill was third with a turnover of 8.8 million shares. It shed 07 paisas to finish at Rs18.09/share.