Stocks end flat; retail investors support index

Stocks closed flat on Wednesday as retail investors bought utility and energy stocks in an otherwise dull market, dealers said.

They added that the equities exhibited muted performance as late buying by mutual funds and foreign investors supported the market when it remained in the negative zone initially.

“Ongoing positive momentum boosted retail investors’ participation and confidence which is evident from the fact that retail favourites (K-Electric) led the volume charts,” brokerage Topline said in its post market note.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index gained 0.14 percent or 57.4 points to close at 41,544.27 points.

KSE-30 shares index gained 0.53 percent or 111.23 points to close at 20,915.71 points.

As many as 372 scrips were active of which 167 advanced, 185 declined and 20 remained unchanged.

The ready market volumes stood at 233.607 million shares as compared with the turnover of 229.36 million shares a day earlier.

Analyst Ahsan Mehanti at Arif Habib Corp said stocks closed higher led by oil and banking scrips on strong valuations.

“Investor speculations ahead of year-end earnings announcements and SBP (State Bank of Pakistan) affirmations on yuan-based trade to curb rupee depreciation invited late session interest in cement, steel and auto stocks.”

On the leader board, Oil and Gas Development Company (OGDC), up 1.5 percent, Pakistan Petroleum (PPL), up 1.4 percent and Pakistan Oilfields (POL), up 1.4 percent contributed most to gains on reported local interest, while financials and cements witnessed mild profit-taking and notable names closed either with trimmed gains or a little in red.

K-Electric (KEL), up 4.0 percent was in limelight and dominated volumes on market talks that its issues related to multi-year tariff and deal with Shanghai Electric will be resolved in the coming week.

On corporate front, the board of Sazgar Engineering Works (SAZEQ), up 0.8 percent notified exchange of giving a green signal to its four-wheeler assembly project with an estimated cost of $16 million.

Going forward, analysts expect benchmark index to consolidate gains and trade in a range of 500-700 points.

Companies reflecting highest gains include Wyeth Pakistan, up Rs65.53 to close at Rs1,376.17/share, and Sanofi Aventis, up Rs61.33 to close at Rs1,359/share.

Companies reflecting most losses include Nestle Pakistan, down Rs573.89 to close at Rs10,926.11/share, and Phillip Morris, down Rs160 to end at Rs3,040/share.

Highest volumes were witnessed in K-Electric with a turnover of 47.37 million shares.

The scrip gained 26 paisas to close at Rs6.75/share.

Bank of Punjab was second with a turnover of 13.395 million shares. It gained 30 paisas to close at Rs8.89/share.

TRG Pakistan was third with a turnover of 11.26 million shares. It shed 72 paisas to finish at Rs28.98/share.