Stocks end flat as investors turn to profit-taking

Stocks turned flat on Wednesday as investors turned to profit-taking amid rate hike concerns and political deadlock on caretaker prime minister’s name, dealers said.

Topline Securities in its post-market note said, “Pakistan equities witnessed subdued session, where index consolidated the last day’s gain of 2.6 percent.” Market participation declined due to inconclusive meeting between leader of the opposition and prime minister over selection of caretaker PM, it added.

The term of the current government would end by May 31, 2018 and affairs of Islamabad would be handed over to the caretaker government.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index rose 0.06 percent or 27.43 points to close at 42,772.25 points. KSE-30 shares index rose 0.03 percent or 5.35 points to close at 20,986.04 points. As many as 352 scrips were active of which 174 advanced and 166 declined, whereas 12 remained unchanged.

The ready market volumes stood at 131.33 billion shares as compared to the turnover of 140.84 billion shares in the previous session.

Analyst Ahsan Mehanti of Arif Habib Corporation said, “Stocks closed higher on strong valuations amid cautious activity ahead of monetary policy announcement on May 25.”

Moody’s expectation on rupee depreciation, auto assemblers’ expectation of decline in sales to non-filers, easing global crude oil prices, and concerns for surging current account deficit invited mid-session pressure, he added.

Another obstacle for the market would be the upcoming Financial Action Task Force meeting, for which the team from Pakistan has left, dealers said.

Indus Motor and Pak Suzuki were range-bound even though the two companies have recently issued notices on not selling cars to non-filers of tax, as required under Budget FY19.

Banks were mostly positive ahead of the monetary policy announcement on Friday. Most market participants expect a rate hike, which was why financials like Bank Alfalah up 1.64 percent, Bank Al Habib up 1.64 percent, and MCB up 1.60 percent, posted gains.

Companies with the highest gains included Unilever Foods, up Rs303.00 to close at Rs7,998.00/share, and Pakistan Tobacco, up Rs100.00 to close at Rs2,170.00/share.

Companies with the most losses were Island Textile, down Rs53.49 to close at Rs1,031.51/share, and ICI Pakistan, down Rs19.29 to close at Rs870.00/share.

Highest volumes were witnessed in Sui Northern Gas with a turnover of 5.549 million shares.

The scrip gained Rs2.075 to close at Rs100.74/share. It was followed by TRG Pakistan Limited with a turnover of 4.623 million shares. Its scrip gained 0.16 paisas to close at Rs27.57/share.

Lowest volumes were witnessed in Pakistan Elektron with a turnover of 6.919 million shares. Its scrip lost 0.28 paisas to close at Rs37.16/share.