close
Advertisement
Can't connect right now! retry

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!
September 18, 2019

Stocks end flat as institutions book available gains

Business

September 18, 2019

The capital market ended flat on Tuesday with activity mostly geared by fund houses and financial institutions that booked available gains, supporting the oil sector on account of strike on Saudi oil plants, dealers said.

Analyst Ahsan Mehanti from Arif Habib Corporations said, “Stocks closed lower amid thin trade on investor concerns over economic uncertainty.” Surging global crude oil prices following strike on Saudi oil plants invited institutional support in oil sector.

Investors remained concerned over the outcome of GIDC case for the corporate sector, dismal data on remittances, as well as cement and auto sales in August 2019, which played a catalytic role in the bearish close, Mehanti added.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index lost 0.06 percent or 19.63 points to close at 31,908.92 points level. KSE-30 shares index followed suit with a low of 0.22 percent or 33.09 points to end at 15,033.20 points level.

Of 363 active scrips, 174 went up, 170 retreated, and 19 remained unchanged. The ready market volumes stood at 122.012 million shares, as compared with the turnover of 104.605 million shares in the previous session.

Salman Ahmad, head of institutional sales at Aba Ali Habib, said, “The market showed somewhat mixed behaviour. Oil stocks helped the market to go down as the crude oil price in global market has been showing upward trend.”

Moreover support arrived from banking sector as well after central kept the interest unchanged. In the last two sessions interest from foreign investors has increased sharply especially in oil and exploration sector. “The market failed to gain more because of the geopolitical situation and different news on the political front,” Salman added.

Samiullah Tariq, director research at Arif Habib, said the State Bank governor in his briefing said that domestic demand oriented sectors like cement, steel and automobiles were not doing well, whereas performance of the manufacturing sector was mixed. “There is a noticeable slowdown in large scale manufacturing.”

SBP would like to get more investment in bonds as compared to T-bills, to get longer term finance at competitive rates. The objective was to deepen the debt market. Once the foreign investors get a feel that net reserves were not falling, a lot of portfolio investment would be attracted, Tariq explained.

The market opened with small gains as the central bank’s announcement to keep interest rate unchanged came in line with market expectations.

The deliberations made by the State Bank Governor Reza Baqir with analysts of a leading brokerage house revealed that though exchange rate has been stabilised, the authority still worried about inflation numbers.

The highest gainers were Bata Pakistan, up Rs60.00 to close at Rs1,260.00/share, and Pakistan Services, Rs40.00 to finish at Rs1,060.00/share. Companies that booked highest losses were Nestle Pakistan, down Rs247.24 to close at Rs5,642.76/share, and Gatron Industries, down Rs23.35 to close at Rs443.65/share.

Pakistan Elektron recorded the highest volumes with a turnover of 16.754 billion shares, whereas the scrip gained Rs0.67 to end at Rs16.81/share. The lowest volumes were witnessed in Pakistan International Bulk recording a turnover of 3.132 million shares, with the scrip losing Rs0.09 to end at Rs7.13/share.

Topstory minus plus

Opinion minus plus

Newspost minus plus

Editorial minus plus

National minus plus

World minus plus

Sports minus plus

Business minus plus

Karachi minus plus

Lahore minus plus

Islamabad minus plus

Peshawar minus plus