Stocks close flat after volatile session

Stock market witnessed a volatile session on Tuesday with index swinging in between 500 points as investors opted for profit-taking after an extended bull run, dealers said.

Analyst Ahsan Mehanti at Arif Habib Corp said stock closed flat on late session institutional support in oil, cement and steel scrips on strong valuations. Mid-session pressure was witnessed in overbought stocks on investor concerns over high current account deficit and prevailing economic uncertainty, he added.

“Speculations ahead of major earning announcements at PSX and likely approvals on privatisation of SOEs helped the index close above session lows,” the analyst said.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index gained 0.02 percent or 9.51 points to close at 44,907.20 points.

KSE-30 shares index shed 0.12 percent or 28.33 points to close at 22,711.56 points. As many as 379 scrips were active of which 188 advanced, 172 declined and 19 remained unchanged.

The ready market volumes stood at 226.44 million shares as compared with the turnover of 294.35 million shares a day earlier.

Analyst Mohammad Arbash at Elixir Securities said equities closed little changed after witnessing volatile trading. “Market opened on a lacklustre note and as the day progressed saw profit-taking in specific sectors namely financials, steels and autos. However, institutional interest reportedly from foreigners remained higher in cements.”

Oils remained in limelight with Oil and Gas Development Company, up 1.3 percent announcing hydrocarbon discovery. On the results front, earnings announced by National Refinery, down 0.1 percent, Attock Refinery, up 0.85 percent, Honda Car, down 4.95 percent and Attock Cement, down 2.7 percent came lower than street consensus.

However, International Steels, up 2.2 percent announced a surprise cash payout of Rs1.5/share along with inline earnings, cheering investors.

Going forward, analysts see consolidation in near-term as investors’ focus shifts to stocks earnings.

Companies reflecting highest gains include Nestle Pakistan, up Rs229.54 to close at Rs11,568.54/share, and Siemens Pakistan, up Rs45.39 to close at Rs953.29/share.

Companies reflecting most losses include Honda Atlas Cars, down Rs27.67 to close at Rs531.34/share, and Millat Tractors, down Rs25.82 to end at Rs1,339.51/share.

Highest volumes were witnessed in Sui Southern Gas with a turnover of 13.575 million shares. The scrip gained Rs1.14 to close at Rs23.99/share.

Dewan Cement was second with a turnover of 12.858 million shares. It gained 76 paisas to close at Rs10.07/share. Pak Elektron was third with a turnover of 12.36 million shares. It gained Rs1.35 to finish at Rs61.85/share.