Stocks inch down on political uncertainty

Stocks closed flat on Friday as investors remained on the sidelines with selling pressure in blue-chip shares along with persistent political uncertainty, dealers said.

Analyst Salman Ahmed at Abba Ali Habib said the market closed on the lower side due to speculation over poor performance by cement units up north, which, combined with the rising coal prises, increased pressure on the sector.

He also attributed the slight slide to political uncertainty due to the weekend and some technical pressures.

Pakistan Stock Exchange benchmark KSE-100 shares index shed 0.28 percent or 128.43 points to close at 45,259.34 points. KSE-30 shares index fell 0.80 percent or 180.57 points to end at 22,309.17 points. As many as 369 shares were active, of which 142 advanced and 206 declined, whereas 21 remain unchanged. The ready market volumes stood at 144.01 million shares as compared to the turnover of 183.36 million shares a day earlier.

Arif Habib Ltd, in its closing report said the KSE100 again saw major selling in blue chips like DG Khan Cement, Lucky Cement, Engro, and Pakistan Oilfields, which pushed the index down.

The day started in green and at a point in time increased by 138 points, while maintaining the positive trend almost throughout the day.

However, it said, “...the situation took a negative turn in the last half hour, which skewed the index from positive to negative and the session ended at 45,259 points.”

Higher than expected results in financials, as well as Engro Fertilizer, International Industries, and Amreli Steels garnered support for the index.

Overall, steel went down whereas fertiliser propped up on better results. Auto, E&P and cements played on the downside.

Companies with the highest gains included Colgate Palmolive, up Rs153.33 to close at Rs3,353.33/share, and Pak Tobacco, up Rs51.10 to end at Rs2096.10/share.

Companies with the most losses were Bata Pakistan, down Rs59.00 to close at Rs2,751.00/share, and KSB Pumps, down Rs18.94 to close at Rs361.06/share.

Highest volumes were witnessed in Engro Polymer with a turnover of 8.322 million shares. The scrip gained 37 paisas to close at Rs38.82/share. Lowest volumes were witnessed in Azgard Nine with a turnover of 7.959 million shares. The share loss 94 paisas to close at Rs14.97/share.