Mid-session profit-taking flattens PSX

Stocks ended barely changed after getting off to a good start as second-session profit-taking wiped out all the early points, despite firm fundamentals and strong sentiments, dealers said.

Pakistan Stock Exchange’s (PSX) benchmark KSE-100 shares index lost 0.06 percent or 26.13 points to close at 43,740.56 point.

Volumes decreased to 482.628 million shares, as compared to 497.562 million shares in the previous session. KSE-30 also hit a low of 0.14 percent or 25.43 points to end at 18,246.21 points level.

Topline Securities in a note said continuing its momentum from the previous day (Thursday), the market opened on a positive note to make an intraday high of 189 points. However, intraday profit taking in second half of the trading session led the index to close on a flat note, the brokerage added.

Major contribution to the index came from PSO, THALL, ANL, HBL and NBP, as they added 75 points to the index, whereas ENGRO, PPL, HUBC, KTML, and KOHC lost value to weigh down the index by 69 points, Topline said in its daily market review.

Muhammad Saeed Khalid, head of research at Shajar Capital, said the stocks remained mixed during the day session, marking a day-low of 129 points.

Investors remained on the buying side where they averaged out their cost price in order to gain more capital gains, he said.

Khalid said remarkable activity was witnessed in the SAZEW, GHNI, GHNL, and AVN where investors bought aggressively mainly on the approval of the Electric vehicle and mobile phone policy later yesterday.

“However investors booked capital gains owing to weekend considerations, while political uncertainty seems to have surpassed economic recovery,” Khalid added.

Salman Ahmad, head of institutional sales at Aba Ali Habib Securities, said the index remained in a low band owing to upcoming rollover week amid some profit taking.

“The market is waiting for some fresh buying, which might surface in New Year because of year-end and rollover week; however, some trimming is also expected,” Ahmad added.

“With the overall sentiment being positive and key economic numbers on the healthier side the index is likely to remain buoyed.”

Trading activity was recorded in 405 active scrips, of which 187 increased, 200 lost, and 18 remained unchanged.

Brokerage Next Capital in their daily market round-up said the participation for the benchmark decreased to 248 million from 286 million in the previous session (-13 percent on day-on-day basis).

Major contribution to total market volume came from PRL, FFL and KEL churning 98mn shares out of the total market volume of 483mn shares, the brokerage added.

Rafhan Maize, up Rs300 to close at Rs9,300/share, and Indus Dyeing, strengthening by Rs33 to finish at Rs553/share were the top gainers of the day.

Sapphire Textile, down Rs84.67 to close at Rs1,044.32/share, and Sapphire Fibre, losing Rs42.98 to close at Rs918.02/share, ended up as the worst losers.

Pakistan Refinery led volumes with 38.071 million shares and gained Rs0.94 to end at Rs21.61/share. Unity Foods Limited recorded lowest trade with 15.217 million shares and lost Rs0.26 to end at Rs28.06/share.