Stocks stay range-bound as investors await positive trigger

Stocks ended flat on Monday as concerns over lack of roadmap to address mounting current account deficit and falling foreign currency reserves, as well as political volatility kept investors on the sidelines, dealers said.

They added that the investors remained concerned as government has not yet disclosed any concrete plan to address mounting current account deficit numbers that has swelled to $14 billion in the first 10 months of the current fiscal year.

“… equities closed flat on the first day of the rollover week despite the approval of FY19 budget by the parliament on last Friday,” Topline Research said in a post market note.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index rose 0.06 percent or 25.13 points to close at 41,648.65 points.

KSE-30 shares index rose 0.11 percent or 21.48 points to close at 20,335.38 points. As many as 325 scrips were active of which 126 advanced and 179 declined, whereas 20 remained unchanged.

The ready market volumes stood at 88.458 million shares as compared to the turnover of 82.848 million shares in the previous session.

Ismail Iqbal Securities in their report said KSE-100 remained mostly range-bound where index closed with gains of only 25 points.

The gains broke the long bearish spell that had engulfed the market. The passing of the Finance Act on Friday and somewhat favourable comments on the economy by Moody’s brought some relief.

However, jitters remained regarding the announcement of the caretaker prime minister, which might be made on Tuesday.

Cement stocks, including DG Khan Cement up one percent, Fauji Cement 1.23 percent, and Attock Cement up 1.05 percent, rallied due to a price hike of around Rs20/bag over the weekend.

Companies with the highest gains included Pakistan Tobacco, up Rs87.00 to close at Rs2,000.00/share, and Island Textile, up Rs50.99 to close at Rs1,139.99/share.

Companies with the most losses were Bata Pakistan, down Rs113.04 to close at Rs2,165.96/share, and Siemens Pakistan, down Rs17.60 to close at Rs1,056.40/share.

Highest volumes were witnessed in Fauji Cement with a turnover of 6.045 million shares. The scrip gained 3 paisas to close at Rs24.61/share. It was followed by Pak-Elektron with a turnover of 5.927 million shares. Its scrip gained 26 paisas to close at Rs35.82/share.

Lowest volumes were witnessed in Engro Polymer with a turnover of 5.535 million shares. Its scrip lost Rs1.52 to close at Rs33.19/share.