Stocks end flat as lockdown chatter grows louder

Stocks on Friday seesawed the whole session to end unchanged in a strictly risk-off environment as some stringent measures to contain the resurging pandemic are likely in the offing, dealers said.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index gained 0.01 percent or 4.79 points to close at 40,569.35 points, while volumes decreased to 243.084 million shares from 328.299 million shares on Thursday.

Topline Securities in its review said, “The market opened on a negative note as the index slumped to make an intraday low of 302 points”.

Trading activity continued to grow dimmer and dimmer as the day progressed with the index zigzagging between positive and negative zones to finally close flat, the brokerage said.

KSE-30 shares index also gave up 0.2 percent or 34.68 points to end at 17,026.65 points.

A A Soomro, Managing Director at KASB Securities, said, “The market ended choppy and mixed again as scares of rising COVID-19 cases gripped investor at the weekend”.

“We saw some positive movement in the cements sector as investors took longer to weigh in the view of appreciation currency; however, rising coal prices might negate the benefits,” Soomro added.

Salman Ahmad, head of institutional sales at Abba Ali Habib Securities, said, “The pattern at the market was mixed to positive as most of the investors stayed away from the market; however, before the close, institutional support. especially from mutual funds, helped the market end with a positive tag”.

Moreover, elections in Gigilt Baltistan and COVID-19 situation were likely to set the trend in the upcoming week, Ahmed added.

Trading activity was recorded in 387 active scrips, of which 199 gained, 165 lost, and 23 remained unchanged.

Tahir Abbas, director research at Arif Habib Ltd, said, “The rise in COVID-19 cases unleashed a new wave of uncertainty as it has set off rumours that the government next week is likely to announce new restrictive measures , which might slow down the economic process which had just recently started to picking up”.

Moreover, the trend would become clear after the NCOC announcement next week; however enforcement of lockdown in several trading partner countries currently hinted at slowing down of some export orders, Abbas added.

Analyst Ahsan Mehanti from Arif Habib Corporation, said, “Stocks ended flat led by cement, banking and fertiliser scrips on strong valuations”.

He said pressure remained on concerns over the outcome of IMF review under EFF amid economic uncertainties and uncertainty in global equities.

“Surging banking deposits amid strong home remittances in October and upbeat data on LSMI output for July-September held stocks in the green, Mehanti added.

Top gainers of the day were Sapphire Textile, up Rs77.52 to close at Rs1,137.53/share, and Nestle Pakistan, up Rs70 to finish at Rs6,400/share.

Rafhan Maize, down Rs55 to close at Rs8,150/share, and Ismail Industries, down Rs18 to close at Rs361/share, were the worst losers in terms of values.

Posting 28,267 million shares, Pakistan Refinery was on the top of the volumes chart and it gained Rs0.8 to end at Rs18.45/share, while Bankislami Pakistan was at the bottom with 6.168 million traded shares, and it also gained Rs0.01 to end at Rs10.10/share.