Stocks end flat in triggerless trade; investors await MSCI review

The capital market on Monday ended flat as investors remained listless on account of rising COVID-19 cases in Pakistan, upcoming MSCI review, and budget concerns on International Monitory Fund (IMF) pressure, dealers said.

Faisal Shaji, strategist at Standard Capital, said, “Market remained lacklustre with scattered volumes. Mixed sentiments were drawn from strict lockdown calls from provincial government on weekend.”

Impact of resumption in business activity might take time at the exchange. Also pressure from the International Monitory Fund (IMF) on next budget would not go down well as far as sentiments were concerned, he added.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index gained 0.05 percent or 16.10 points to close at 33,283.79 points level. KSE-30 shares index followed suit with a low of 0.08 percent or 11.77 points to end at 14,607.93 points level.

Of 328 active scrips, 171 moved up, 128 retreated, and 29 remained unchanged. The ready market volumes stood at 198.248 million shares, as compared with the turnover of 88.018 million shares in the previous session.

Analyst Ahsan Mehanti from Arif Habib Limited said, “Stocks showed recovery led by selected scrips across the board on strong valuations.” Investors weigh expected Rs600 billion Public Sector Development Programme (PSDP) commitments in Federal Budget 2020.

Intraday pressure remained on concern of foreign outflows, rupee instability and dismal data on oil, cement and auto sales in April 2020. “Investor speculations in the

earnings season played a catalytic role in the positive close at PSX,” he added.

E&Ps closed in red as international crude oil prices WTI and Brent were trading three percent and two percent low, respectively. Power, E&Ps and cements dragged the index, cumulatively shedding 67 points.

Fahad Rauf, deputy director at Ismail Iqbal Securities, said equities remained range-bound on concerns about government negotiations with IMF on FY21 budget and MSCI semi-annual review (today).

Ferozsons closed at the upper lock, rising by 7.50 percent, as its subsidiary was in negotiations to enter into a non-exclusive license agreement with Gilead Sciences Inc for the manufacture and sale of remdesivir, he added.

Salman Ahmad, head of institutional sales at Aba Ali Habib, said the market showed some stability after global easing of lockdown in countries helped stock markets, where Asian markets registered sharp improvement.

Moreover, the market men also took cue from the MSCI review to be held on Tuesday. Earlier, it was expected that Pakistan’s market would see some downward movement, but later it appeared that the status of Pakistani market would remain unchanged on account of the heavy brunt all global markets have suffered during the pandemic, he added.

The top gainers were Indus Dyeing, up Rs46.01 close at Rs666.00/share, and Wyeth Pakistan Limited, up Rs27.85 to finish at Rs837.85/share.

Unilever Foods, down Rs650.00 to close at Rs9,850.00/share, and Bhanero Textile, down Rs49.99 to close at Rs760.01/share, were the main losers.

WorldCall Telecom recorded the highest volumes with a turnover of 62.427 million shares. Its scrip gained Re0.22 end at Rs1.00/share.

The lowest volumes were witnessed in Sui Northern Gas, recording a turnover of 2.910 million shares, whereas its scrip gained Rs3.82 to end at Rs60.36/share.