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!
July 11, 2020

Stocks end flat as investors avoid long-term commitments

Business

July 11, 2020

The capital market on Friday ended flat in range-bound trade amid dull activity and low interest as investors lacked enthusiasm and did not make long-term commitments, dealers said.

Fahad Rauf, deputy research at Ismail Iqbal Securities said, “Equities remained range-bound throughout the session and managed to close in the green territory, marking the 11th consecutive positive streak.”

Moreover, liquid foreign reserves crossed $18 billion mark as of last week. Health-related news improved too, as Covid-19 seven-day infection ratio dropped to a 49 day low at 13 percent. Cements, banks and fertilisers contributed most to the index gains, cumulatively contributing 110 points, Rauf added.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index gained 0.13 percent or 48.24 points to close at 36,190.41 points level. KSE-30 shares index followed suit with a high of 0.11 percent or 17.94 points to end at 15,693.71 points level.

Of 358 active scrips, 167 moved up, 174 retreated, and 17 remained unchanged. The ready market volumes stood at 292.709 million shares, as compared with the turnover of 467.486 million shares in the previous session.

Faisal Shaji Strategist at Standard Capital said, “The market witnessed profit taking on Friday at the close of the week after heavy volumes from general investors on Thursday.”

Investors made healthy gains, which were a good sign; however, certain cement and long steel stocks witnessed upsurge given Prime Minister Imran Khan’s anticipated initiatives on public housing project, Shaji added.

Zia Shafi, senior investment advisor at Intermarket Securities said, “The short-term view of the market remained positive; however, next week the index might see adjustment which would be merely on technical grounds as the market has increased in last 10 consecutive sessions.”

Investors should keep a close eye on international political scenario and Covid-19 trends, as any positive developments would help build rally, otherwise investors should not commit long-term positions for the time being, Shafi added.

Analyst Ahsan Mehanti from Arif Habib Corporations said, “Stocks closed higher in the earnings season led by cement and banking scrips on strong valuations.”

Pressure remained on concerns for foreign outflows and bearish global stocks. Oil stocks battered on slump in global crude oil prices. Rupee stability, IMF FY21 forecast on gradual economic recovery owing to government’s economic package and tax incentives, as well as SBP measures on reductions for export refinance rates played a catalytic role in the positive close at PSX, Mehanti added.

During the past eleven sessions, the domestic equity bourse has risen by 7.4 percent (up 2,478 points). The capital market witnessed the longest rally after January 8, 2018, finishing a streak of positive consecutive trading sessions.

The top gainers were Colgate Palmolive, gaining Rs39.00 to close at Rs2,299.00/share, and Hinopak Motor, up Rs35.03 to finish at Rs502.19/share.

Sapphire Textile, down Rs51.00 to close at Rs800.00/share, and Indus Dyeing, losing Rs37.73 to close at Rs551.00/share, were the main losers.

Unity Foods Limited posted the highest volumes with 27.984 million shares, but lost Re0.16 to end at Rs12.59/share.

Bank of Punjab turnover was the lowest with 5.990 million shares, whereas the scrip gained Re0.12 to end at Rs9.30/share.