Stocks little changed as caution prevails amid trigger drought

Stocks on Tuesday ended mostly unmoved in a muted trade with spells of profit-taking as caution-abiding investors are looking for "good news" from economic as well as political sides to muster up their morale for taking new positions, dealers said.

Pakistan Stock Exchange’s (PSX) benchmark KSE-100 shares index gained 0.25 percent or 78.03 points to close at 31,829.24 points level, while KSE-30 index was up 0.10 percent or 14.71 points to end at 14,934.04 points level.

Of 341 active scrips, 183 advanced, 137 retreated, and 21 were unchanged. The trading volumes stood at 88.807 million shares as against 86.617 million in the previous session.

Analyst Ahsan Mehanti from Arif Habib Corporations said, “Stocks showed recovery led by oil sector and energy scrips on speculations ahead of quarter end close amid higher global crude oil prices and government’s resolve for privatisation of SOEs”.

Strong financial results in energy sector and speculations on likely resolution of Gas Infrastructure Development Cess issue this week by Supreme Court helped the index end green zone, Mehanti added.

Madiha Javed, head of research at Ismail Iqbal Securities said,”The KSE-100 index remained lackluster throughout the session today. Investors continued to book profits due to rollover week”.

Securities and Exchange Commission of Pakistan approved revisions in tariff structures of the National Clearing Company of Pakistan Limited and the Central Depository Company of Pakistan Limited to minimise investor-related costs in equity and debt markets, Javed said.

“Investor participation remained roughly in line with yesterdays, while exploration and production, chemical, and oil marketing companies cumulatively added 70 points to the index,” Madiha added.

Salman Ahmad, head of institutional sales at Aba Ali Habib Securities, said,” The price pattern was on the lower side because of the rollover week”.

However, inherent sentiment has been quite strong and the market required a big push from either political or economic fronts to cheer up investors, Ahmad added.

“The reduction in current account and trade deficits has been good for the country’s economy but trade/business needs a cut in the benchmark interest rate to kick-start the idling manufacturing sector,” Salman added.

The capital market moved both ways during the session as the index touched the low of 31,436 points and a high of 31,892 points. Fresh interest surfaced from the financial institutions and some of the selected foreign fund houses.

The market ended on a positive note on buying in oil and gas stocks following speculations the resolution of the issue of circular debt is in the making. The government is expected to get IMF nod to issue bonds worth Rs200 billion to reduce the volume of circular debt.

Moreover auto sector came in the limelight after unverified reports the government is considering lowering federal excise duty imposed in the budget give automakers some leverage to increase production.

The highest gainers were Nestle Pakistan, up Rs107.24 close at Rs5,750/share, and Colgate Palmolive, up Rs101.85 to finish at Rs2138.85/share.

Companies that booked highest losses were Sanofi-Aventis, down Rs24.25 to close at Rs470/share, and Murree Brewery, down Rs6.54 to close at Rs688.45/share.

Maple Leaf recorded the highest volumes with a turnover of 17.677 million shares, losing Rs0.59 to end at Rs14.15/share, while Engro Polymer’s trading volumes was lowest at 1.996 million shares; however, it gained Rs0.82 to end at Rs25.86/share.