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Thursday March 28, 2024

Stocks end flat in volatile trade; volume shrinks

By Our Correspondent
December 31, 2019

The capital market ended flat on Monday following a volatile session amidst selling from financial institutions ahead of year-end closing and fewer participation from banks and high net worth individuals, dealers said.

Analyst Ahsan Mehanti from Arif Habib Corporations said stocks showed recovery, after the International Monetary Fund (IMF) first review acknowledged that Pakistan’s structural reforms were working. It said the country was successfully reversing imbalances, lowering inflation projections to 11.8 percent in FY20, improving tax collection, reducing trade deficit, upgrading credit ratings, and had also eased its energy sector debt crises, all adding to financial stability.

Higher global crude oil prices, surging local urea prices and upbeat economic outlook played a catalytic role in the positive close, Mehanti added.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index gained 0.10 percent or 39.10 points to close at 40,887.63 points level. KSE-30 shares index followed suit with a low of 0.13 percent or 24.88 points to end at 18,752.10 points level.

Of 362 active scrips, 201 up, 138 retreated, and 23 remained unchanged. The ready market volumes stood at 165.834 million shares, as compared with the turnover of 267.578 million shares in the previous

Salman Ahmad, head of institutional sales at Abba Ali Habib, said the market witnessed another session of downward correction or “one could say adjustment heralded the market”. During the session, the index crossed 41,000 points level, which enticed investors to sell their holdings.

He also called the adjustment good for the market with economic fundamentals strong on the back of a clean nod from the IMF for the country’s key economic numbers.

The market after receiving some healthy news from the financial front would show some fresh buying in the sessions ahead, Salman added.

According to a leading analyst, whenever the market had to breach key levels such as the 39,000 and 40,000 points level, the index received downward correction before crossing the level. Currently at 41,000 points level, the market has been suffering resistance.

Support would help secure levels beyond 41,000 points, the analyst added. Some renewed buying would likely remain intact in oil and exploration, and oil marketing companies in the coming days, as crude oil prices have touched three months high.

A petition has been filed at the Peshawar High Court as the crisis of gas load-shedding intensifies in Khyber Pakhtunkhwa.

Moreover, the Oil and Gas Regulatory Authority (OGRA) has proposed increase in petroleum product prices for January 1, 2020 from Rs2.08 to Rs3.10 which would help improve margins of the companies, a leading trader said.

The highest gainers were Nestle Pakistan, up Rs116.50 close at Rs8,100.00/share, and Colgate Palmolive, up Rs50.00 to finish at Rs2,350.00/share.

Companies that booked highest losses were Rafhan Maize, down Rs39.00 to close at Rs7,311.00/share, and Wyeth Pakistan Limited, down Rs25.00 to close at Rs810.00/share.

K-Electric Limited recorded the highest volumes with a turnover of 19.107 billion shares. The scrip gained Rs0.29 to end at Rs4.35/share.

The lowest volumes were witnessed in TRG Pakistan Limited, recording a turnover of 3.718 million shares, whereas the scrip gained Rs0.20 to end at Rs24.26/share.