Stocks close flat as investors await new trigger

Stocks closed flat on Monday as investors, despite timely senate elections, remained wary of the country’s fiscal position and preferred to stay on the sidelines post corporate earnings announcements, dealers said.

tAn Analyst at Topline Securities said despite timely senate election; stocks closed flat on the first day of the week amid dull volumes, owing to lack of any trigger.

“Investors mainly followed wait and watch approach in expectations of any new trigger that could likely be expected announcement of tax amnesty scheme, appointment of senate chairman and new budgetary measures by the government,” the analyst said.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index gained 0.20 percent or 88.59 points to close at 43,829.08 points. KSE-30 shares index gained 0.14 percent or 31.3 points to close at 22,090.54 points. As many as 359 scrips were active of which 170 advanced, 172 declined and 17 remained unchanged.

The ready market volumes stood at 137.04 million shares as compared with the turnover of 229.93 million shares a day ago.

Analyst Ali Raza at Elixir Securities said equities closed slightly positive after range-bound trading. “Contrary to our expectations of a robust session, market traded dull and didn’t cheer the timely and peaceful culmination of Senate elections over the weekend; turnover in wider market clocked in just under $55 million, down 29 percent versus 20-day average,” he added.

As the market struggled to find a clear direction all day, few select stocks namely Habib Bank, up 1.3 percent and Lucky Cement, up 1.3 percent came to the rescue in late trading and added 65 points to the benchmark index.

Key highlights included Searle Pakistan, up 1.1 percent announcing a joint venture with a Belgium food supplement manufacturer and Tri-Pack Films, up 5.0 percent announcing expansion worth $20 million for production of metalised films to cater export and local markets.

Going forward, analysts expect the market to remain trigger-hungry in the coming days. Cements are likely to remain in limelight as investors look for clues on retail prices, and any signs of further stability in prices should bode well for the sector and market sentiments.

Companies with the highest gains included Unilever Foods, up Rs160 to close at Rs9,100/share, and Rafhan Maize, up Rs144 to close at Rs7,599/share. Companies showing the most losses included United Brands, down Rs26.72 to close at Rs507.78/share, and Island Textile, down Rs22 to end at Rs1,050/share.

Highest volumes were witnessed in Unity Foods with a turnover of 10.22 million shares. The scrip gained Rs1.25 to close at Rs26.27/share. Worldcall Telecom was second with a turnover of 9.06 million shares. It gained three paisas to close at Rs2.51/share. Agritech Limited was third with a turnover of 8.14 million shares. It gained 13 paisas to close at Rs8.79/share.