Stocks end flat after range-bound session

Stocks ended flat after a range-bound session on Tuesday, the first day after Eid holidays, as financials and exploration and production companies remained under pressure and investors chose to be cautious, dealers said.

Topline Securities in its post-market note said, “Weakening of rupee against the dollar and finance ministry’s resolve to make amnesty scheme successful did not create any excitement in the market.”

Financials and exploration and production companies were under pressure as both sectors cumulatively withheld 110 points from the index.

“E&Ps remained laggards as international prices trended on lower side, whereas profit taking kept banks under pressure, we believe,” the note added.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index closed 0.00 percent or 2.16 points to close at 43,682.84 points, whereas KSE-30 shares index lost 0.09 percent or 19.70 points to close at 21,546.60 points.

Of 325 active scrips, 145 advanced and 148 declined, whereas 32 remained unchanged. The ready market volumes stood at 123.266 billion shares compared to a turnover of 117.539 billion shares in the previous session.

Zeeshan Afzal, head of research at Insight Securities, said the market resisted at 44,000 level with dull volumes due to multiple factors, including foreign sell-off fears in case of fall in emerging markets, rupee depreciation, and lack of clarity over economic policies as caretaker government stalls major decisions.

Mixed trend was also witnessed in E&Ps despite little correction in oil in the international market. Almost all IT companies closed in green as they were major beneficiaries of rupee devaluation, he added.

Fertilisers were some of the top drivers of the index due to expected shortage of Urea by July-end, which would propel prices. Several stocks moved to the positive zone as domestic currency continued to slip in the interbank market.

The highest gainers were Ghandara Industries, up Rs32.35 to close

at Rs679.35/share, and Abbott Laboratory, up Rs29.71 to finish at Rs742.09/share.

Companies that booked highest losses were Colgate Palmolive, down Rs89.20 to close at Rs3,400.00/share, and Island Textile, down Rs55.99 to close at Rs1,064.00/share.

Power Cement recorded the highest volumes with a turnover of Rs24.642 million shares, while the scrip gained Rs0.39 to close at Rs8.99/share. It was followed by TRG Pakistan Limited with a turnover of 7.527 million shares, its scrip gained Rs1.46 to close at Rs30.68/share.

The lowest volumes were witnessed in Siddiqsons. It recorded a turnover of 3.99 million shares, with its scrip losing Rs0.24 to end at Rs1.83/share.