Stocks give up gains as investors book profits before protest rally

Stocks pared gains on Friday as investors squared their positions ahead of a protest campaign planned by main opposition parties over the weekend, dealers said.

They added that dismal quarterly financial results also played key role in bearish trend in the market. Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index shed 0.31 percent or 105.02 points to close at 33,657.46 points level. KSE-30 shares index followed suit with a low of 0.29 percent or 46.02 points to end at 15,737.89 points level.

Of 357 active scrips, 146 up, 180 retreated, and 31 remained unchanged. The ready market volumes stood at 170.857 million shares, as compared with the turnover of 121.325 million shares in the previous session.

Dealers said the positive mood faded on concerns over a deadlock between the government and opposition party of Maulana Fazl-ur-Rehman on Azadi March Protest planned from coming Sunday.

Rehman, leader of the Jamiat Ulema-i-Islam-Fazl (JUI-F) party, announced a protest campaign aimed at ousting Prime Minister Imran Khan, raising the prospect of political turmoil in the country.

The main opposition parties of former prime minister Nawaz Sharif and former president Asif Ali Zardari have both said they would back Rehman’s campaign against Khan, though have also said they would not support any unconstitutional action.

The government has said it wants negotiations with the opposition while vowing that no one would be allowed to paralyse life in the capital.

“Uncertainty over FATF progress by Pakistan to address its financing risks and action plans also turned investors’ sentiment negative,” a dealer said.

Oil and banking stocks, however, outperformed the market on surging global crude oil prices and higher banking spreads.

Analyst Salman Ahmad of Aba Ali Habib said the market is likely to show positive trajectory depending on the outcome from long march and sit in Islamabad “as it appears the protest seems to be melting down”.

“The index movement will depend on inflation numbers for the month of October which has been predicted little above 10 percent from 11.4 percent a month back,” he added. “The investors are expecting interest rate reversal from next quarter as inflation to start reducing after start of next year.”

The market opened on a positive nod and closed the first session 129 points up. At the start of the second session the index also landed in the positive column but before the close the index witnessed selling pressure from financial institutions and individuals investors.

Topline Securities in a post market note said the index lost 0.6 percent for the second consecutive week “due to burgeoning political noise in start of the week”.

The market remained positive in three trading sessions during the week as political noise somehow tapered off and cut off yields of T-bills auction came down by up to 68bps, it said.

The highest gainers were Bata Pakistan, up Rs51.25 close at Rs1471.25/share, and Service Industries Limited Rs32.55 to finish at Rs683.55/share.

Companies that booked highest losses were Nestle Pakistan, down Rs138.00 to close at Rs6792.00/share, and Colgate Palmolive own Rs99.00 to close at Rs1900.00/share.

Pakistan International Bulk recorded the highest volumes with a turnover of 35.589 billion shares. Whereas the scrip gained Rs0.99 end at Rs10.09/share.

The lowest volumes were witnessed in Fauji Fertiliser Bin recording a turnover of 3.896 million shares, whereas the scrip lost Rs0.09 to end at Rs16.18/share.