Stocks end flat as economic uncertainty continues to weigh

Stocks were little changed on Friday as uncertainty over economic uncertainty after the departure of finance minister Ishaq Dar continued to weigh on the market sentiment, dealers said.
Danish Ladhani at JS Global Capital said market remained under pressure owing to uncertainty on the political front and roll-over week pressure. “Investors opted for selling as Finance Minister Ishaq Dar has been granted indefinite medical leave which may hereafter end his chore as the financial Magnus of the country, creating doubts over continuity of current macroeconomic policies.”
The Pakistan Stock Exchange’s benchmark KSE-100 shares index shed 0.04 percent or 17.8 points to close at 40,248.41 points. KSE-30 shares index gained 0.13 percent or 26.22 points to close at 20,329.90 points. As many as 342 scrips were active of which 160 advanced, 168 declined and 14 remained unchanged.
The ready market volumes stood at 106.33 million shares as compared with the turnover of 101.839 million shares a day earlier. Dealers said stocks traded volatile and chairman Security and Exchange Commission of Pakistan’s (SECP) assurances to find a workable solution for the market could not invite buying.
Ahsan Mehanti at Arif Habib Corp said stocks closed lower on investor concerns over foreign outflows and economic uncertainty. “SECP assurances on workable solution for the PSX taxes, margin trading securities and equity financing invited support in selected scrips,” Mehanti said. “However, Dismal data on current account and trade deficits and weak global equities played a catalytic role in bearish close.”
Engro Corp (up 1.7 percent), Hub Power (up 2.2 percent) and Pakistan State Oil (up 2.7 percent) invited investor interest after the scrip took a beating a day earlier. Analysts believe investors would continue to monitor institutional flows and developments on political front to gauge market direction. “Refineries and oil marketing companies are likely to dominate the talk on the streets until clarity emerges on government’s policy on use of furnace oil,” an analyst at Elixir Securities said.
Companies reflecting highest gains include Unilever Foods up Rs345 to close at Rs7,245/share and Pakistan Tobacco up Rs75.75 to close at Rs1,590.75/share. Companies reflecting most losses include Nestle Pakistan down Rs549.99 to close at Rs10,450/share and Bata Pakistan down Rs125 to end at Rs2,375/share.
Highest volumes were witnessed in K-Electric with a turnover of 25.96 million shares. The scrip gained 34 paisas to close at Rs6.01/share. Azgard Nine was second with a turnover of 9.52 million shares. It gained 48 paisas to close at Rs15.32/share. Bank of Punjab was third with a turnover of 5.31 million shares. It shed 06 paisas to finish at Rs8.26/share.