Stocks end flat in lackluster trade

The capital market ended flat amid range-bound trade on Monday, as investors wait for August inflation numbers and pin hopes on resolution of circular debt and better numbers on the economic front, dealers said.

Muhammad Saeed Khalid, head of research at Shajar Capital said, “The market remained volatile during the session marking an intra-day high of 41,311 points.” Investors remained net sellers during the session mainly on the uncertainty regarding the announcement of inflation numbers for August 2020 along with cement and OMCs numbers.

“Further, investors participated bullishly in the oil stocks ahead of expected renewal in higher petroleum prices for the month of September 2020,” Khalid said.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index gained 0.13 percent or 54.71 points to close at 41,110.93 points level.

KSE-30 shares index followed suit with a high of 0.07 percent or 11.80 points to end at 17,707.20 points level.

Of 413 active scrips, 198 moved up, 196 retreated, and 19 remained unchanged. The ready market volumes stood at 451.737 million shares, as compared with the turnover of 238.567 million shares in the previous session.

Analyst Ahsan Mehanti from Arif Habib Corporations said, “Stocks closed higher lead by oil, banking and cement scrips on strong earnings outlook.”

Pressure remained intra-day concern for surge in NSS rates and higher external debt. “Foreign inflows, rupee recovery on reports over surging remittances and $200 million ADB rupee denominated bonds issuance to support external account position played a catalytic role in the bullish close,” Mehanti added.

Affects of last week’s record rains still reverberate on the trading floor as thousands remain home-bound after rainwater accumulation in their areas.

A leading analyst said, “The investors were on the back foot which led to lower interest in trading because of last week’s torrential rains, which kept hundreds of people at their homes owing to stagnant water in their areas.”

Moreover, investors adopted cautious approach on lack of any positive developments. Following the commencement of the new month, key economic numbers like exports, remittances and revenue collection would dictate market direction, the analyst added.

Shahab Farooq, director research at Next Capital said, “The market maintained its positive momentum throughout the day with some profit booking towards the end of the day with healthy volumes.”

The rally was led primarily by energy sector and select banks. Fresh hopes of resolution of circular debt with easing cash flows of the entire energy chain including E&P companies, IPPs, OMCs and GDCs, fuelled positive sentiments in these sectors, Shahab said.

The top gainers were Pakistan Tobacco, gaining Rs99.00 to close at Rs1,779.00/share, and Nestle Pakistan, up Rs68.33 to finish at Rs6,068.33/share, while Sapphire Fibre, down Rs65.75 to close at Rs810.98/share, and Sapphire Textile, losing Rs55.24 to close at Rs840.01/share, were the main losers.

BankIslami Pakistan posted the highest volumes with 40.929 million shares. It gained Re0.94 to end at Rs9.93/share. DGK Cement turnover was the lowest with 11.124 million shares, whereas its scrip gained Rs2.7 to end at Rs111.80/share.