Stocks move both ways to end week on a red note

Stocks on Friday ticked lower in mixed trade as profit-hunting showed no letup in the absence of triggers, while reports of a likely hike in utilities’ tariffs on International Monetary Fund’s behest marred the manufacturing sector, the dealers said.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index lost 0.27 percent or 116.68 points to close at 42,530.67 points level. Volumes decreased to 526.186 million shares, from 884.962 million shares in the last session.

Brokerage Topline Securities in its daily market review said, “The index opened on a positive note to make an intraday high of 222 points; however pressure was observed in the latter hours, which weighed it down to close at 42,531 points level”.

Major contribution to the index came from UBL, ENGRO, HUBC, HASCOL and HBL cumulatively contributed around 106 points, whereas PPL, LUCK, NESTLE, OGDC, and EFERT together brought it down by 150 points, the brokerage added.

Fahad Rauf, deputy head of research at Ismail Iqbal Securities, said, “Volatility gripped the market on Friday and it can be attributed to reports of a slight increase in COVID-19 cases and International Monetary Fund’s asking the government to raise power and gas tariffs, which is bound to burden the manufacturing sector further”.

Auto sector remained in limelight after recording improvement in sales, Rauf said. KSE-30 shares index tracking the broader market hit a low of 0.14 percent or 25.54 points to end at 18,071.14 points.

Analyst Ahsan Mehanti from Arif Habib Corporation said, “Stocks closed bearish led by scrips across the board on global equities rout and a slump in the crude oil prices, while auto stocks outperformed on upbeat car sales in August”.

Dismal exports numbers for last month, Fitch Ratings forecast of a possible slump in remittances and surge in current account deficit during FY21, concerns for energy sector circular debt, and weakening rupee dragged the index down, Mehanti added.

A scrip wise breakdown shows that of 431 active scrips, 170 advanced, 249 retreated, and 12 remained unchanged.

Zia Shafi, senior investment advisor at Intermarket Securities, said, “The market owing to lack of any positive development on the economic front and due to weekend consideration showed lacklustre trend”.

In the near term investors should focus mainly on trading at the local bourse as there were strong expectation that the interest rate would remain unchanged, which might prove to be non-event for the market players, Shafi added.

Muhammad Saeed Khalid, head of research at Shajar Capital, said, “The stock market was sluggish during the session as investors remained net sellers as the financial results of PPL, ASTL, and MLCF spurred profit-selling”. However, investors participated positively in the automobile sector, mainly on the recovery of sales volume numbers announced by the PAMA, Khalid added.

Unilever Foods, up Rs600 to close at Rs13,500/share, and Sapphire Textile, up Rs52.08 to finish at Rs881.99/share, recorded highest gains, while Nestle Pakistan, down Rs325.99 to close at Rs6,650.01/share, and Bhanero Textile, losing Rs64.99 to close at Rs925.01/share, ended up as the major losers.

Hascol Petrol led the volumes with 61.139 million shares, up Rs0.87 to end at Rs22.08/share, whereas PTCL’s turnover was the lowest 11.082 million shares, losing Rs0.4 to end at Rs10.87/share.