Wednesday May 29, 2024

Stocks end flat with hopes pinned on spending budget

By Our Correspondent
June 12, 2021

Stocks remained range-bound in Friday’s session, wherein the benchmark index opened on a positive note and closed in the green territory with investors’ optimism primarily fuelled by hopes of an investor friendly federal budget, dealers said.

Ahsan Mehanti at Arif Habib Corp said stocks closed higher led by selected scrips across the board as investors weighed IMF relaxations in federal budget FY22, GDP growth target of 4.8 percent for FY 22, progress in resolving Rs2.1 trillion circular debt and record remittances of $2.5 billion in May 2021.

“Higher global crude oil prices at over $70, surging foreign exchange reserves to $16.4 billion and rupee stability played a catalytic role in the positive close,” he added.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index gained 0.11 percent or 53.23 points to close at 48,304.72 points. KSE-30 shares index shed 0.30 percent or 58.87 points to close at 19,478.73 points.

As many as 413 scrips were active of which 200 advanced, 195 declined and 18 remained unchanged.

The ready market volumes stood at 1.02 billion shares compared with the turnover of 1.03 billion shares in the last trading session.

Maaz Mulla at JS Global Capital said a volatile session was witnessed at the PSX where the market made an intraday high of 48,531 and an intraday low of 48,245 to close at 48,304 level.

“The government started presenting the Federal Budget (FY2021-2022) during market hours. Investor's interest was witnessed in the refinery sector where Byco Petroleum gained 4.3 percent, Attock Refinery was up 3.6 percent, Pakistan Refinery surged 1.4 percent and National Refinery up 0.4 percent closed in the green zone”.

From the chemical sector, activity was seen in Ghani Glass up 7.5 percent, Agritech Limited up 5.1 percent, Sitara Industries up 2.5 percent, ICI Pakistan up 0.6 percent, and Engro Polymer & Chemicals down 0.6 percent.

Selling pressure was witnessed in the cement sector where Gharibwal Cement declined 1.6 percent, DG Khan Cement shed 1.9 percent, Pioneer Cement was down 1.3 percent, Maple Leaf Cement declined 0.5 percent, and Lucky Cement closed with a loss of 0.4 percent.

Commenting on the federal budget announcement, Ahsan Mehanti said reducing capital gains tax was a positive development. “It is a good development but way less compared to market expectations, which was hoping for reduction of tax on dividends and incentives for new listings. Reduced CGT is positive for the market would help attract foreign investment as the foreign fund managers will have competitive tax rates. However, broad-based measures for the stock market would be better.”

Companies reflecting highest gains included Unilever Foods, up Rs300 to close at Rs16,800/share, and Sapphire Textile, up Rs61.9 to close at Rs898.9/share.

Companies reflecting most losses included Rafhan Maize, down Rs398 to close at Rs9,500/share, and Wyeth Pakistan, down Rs161.03 to end at Rs2,006.37/share.

Highest volumes were witnessed in WorldCall Telecom with a turnover of 120.84 million shares. The scrip shed 03 paisas to close at Rs4.22 share.

Byco Petroleum was second with a turnover of 96.96 million shares. It gained 49 paisas to close at Rs4.22/share.

Agritech Limited was third with a turnover of 59.65 million shares. It gained 35 paisas to finish at Rs7.24.