Stocks remain flat as court gives judgment against former PM

Stocks remained flat on Monday following a volatile trading session, as the accountability court in the country took a decision against former prime minister Nawaz Sharif, dealers said.

Hamad Aslam, director research at Elixir Securities said the market remained dull throughout the session as most fund managers and traders remained glued to their TV screens in anticipation of the court verdicts against the opposition party heads - former prime minister and former president.

“Benchmark KSE-100 shares index had declined sharply during the session, however, it later recovered as fears of nationwide protests faded,” he said. Though the economic direction of the country remains the key determinant for equities, some fund managers fear possible arrest of Pakistan Peoples’ Party’s senior leadership might spark street agitation in Karachi.

“Arrest of former prime minister Nawaz Sharif, however remained irrelevant, as the decision was already widely anticipated,” he added. Pakistan Stock Exchange (PSX) KSE-100 shares index gained 0.15 percent or 57.88 points to close at 38,308.92 points level. KSE-30 shares index followed suit with a low of 0.05 percent or 8.16 points to end at 18,050.58 points level.

Of 330 active scrips, 133 moved up, 165 retreated, and 32 remained unchanged. The ready market volumes stood at 74.655 million shares, as compared with the turnover of 130.398 billion shares in the previous session.

Analyst Ahsan Mehanti from Arif Habib Corporations said, “Stocks showed late session recovery after accountability court verdict against former PM eased ongoing political noise.” Oversold oil, banking and fertilizer scrips outperformed. Investor concerns for political uncertainty and falling global equities invited mid-session pressure.

“UAE announcement to deposit $3 billion in SBP and govenrment agreement with banks over issue of Rs200 billion sukuk to resolve circular debt crisis played a catalytic role in the bullish close at the PSX,” Mehanti added.

Adil Ghaffar, CEO of First Equity Modaraba, said, “Subdued activity was observed and announcement by governor Sindh on Friday, to reduce cost of doing business by reducing taxes on buying and selling of shares through amendment at the Income Tax Ordinance, was overshadowed by NAB verdicts,” he said.

The market dipped by as much as 300 points during the session, but turned positive before the close of the session, with activity mostly centred around cement and power companies. K-Electric recorded hefty turnover after its adviser said they have refreshed the deal of Shanghai Electric that submitted EOI to buy 66 percent shares in the power distribution company.

The highest gainers were Pakistan Tobacco, up Rs127.94 to close at Rs2,755.41/share, and Murree Brewery, up Rs31.88 to finish at Rs841.78/share. Companies that booked highest losses were Unilever Foods, down Rs375.00 to close at Rs7,125.00/share, and Atlas Honda Limited, down Rs18.99 to close at Rs380.01/share.

Fatima Fertilizer recorded the highest volumes with a turnover of 10.072 billion shares. The scrip gained Rs0.9 to close at Rs35.05/share. The lowest volumes were witnessed in Bank of Punjab, recording a turnover of 3.376 million shares, and losing Rs0.16 to end at Rs12.72/share.