Stocks end near flat amid limited institutional support

Stocks ended flat on Friday as seasoned investors were absent from the session, while some financial institutions made fresh commitments, providing limited support ahead of the new government formation next week, dealers said.

Analyst Ahsan Mehanti from Arif Habib Corporation said the stocks closed bearish amid pressure in autos, cement, and banking scrips on weak earnings outlook.

“Economic uncertainty, dismal earnings in the banking sector, weak global crude oil prices, foreign outflows, and concerns for pending circular debt in the energy sector played a catalytic role in the bearish close at the PSX,” he added.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index shed 0.19 percent or 81.77 points to close at 42,842.18 points. KSE-30 shares index shed 0.25 percent or 52.59 points to end at 21,176.18 points.

Of the 384 active scrips, 163 advanced, 201 declined, and 20 remained unchanged. The ready market volumes stood at 250.067 billion shares as compared with the turnover of 206.167 billion shares in the previous session.

Shumaila Badar head of research at Ismail Iqbal Securities said the market was under pressure due to the weekend factor, which reduced the overall turnover compared with the previous session. Tracker Pakistan recorded an increase of 7.19 percent after announcing that its subsidiary (EFU life Insurance) has obtained Window Takaful Operations License from SECP. Atlas Honda Motors down 2.44 percent lost upon 22.83 percent surge in motorcycle imports in June 2018, she added.

The formation of the new government has been delayed but the smooth transition of power for the second time, and vibes from the foreign countries and institutions despite economic challenges remain positive.

Investors were disturbed over continuous selling from foreign fund houses, which according to an analyst, happened because they were cashing their earnings in anticipation of rupee strengthening further. “It is better to sell their holdings once the rupee floats over the 123 mark,” the analyst added.

Companies reflecting highest gains included Indus Motor Company, up Rs30.23 to close at Rs1,582.03/share, and Mehmood Textile, up Rs22.58 to close at Rs475.50/share.

The major losers were Indus Dyeing, down Rs28.00 to end at Rs532.00/share, and National Refinery, down Rs17.58 to close at Rs382.69/share.

The highest volumes were witnessed in Engro Polymer with a turnover of 13.395 million shares. The scrip gained Rs0.61 to close at Rs34.77/share. It was followed by Lotte Chemical with a turnover of 12.745 million shares. The scrip gained Rs0.31 to close at Rs14.46/share. Pakistan Elektron witnessed the lowest volumes with a turnover of 17.717 million shares. Its scrip lost Rs2.1 to close at Rs39.99/share.