Stocks end flat as oil prices weigh

The index ended flat on Tuesday continuing with its post-budget consolidation as investors focused on profit-taking amid anticipated hike in local petroleum prices, dealers said.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index shed 0.19 percent or 93.52 points to close at 48,632.56 points. KSE-30 shares index shed 0.11 percent or 22.41 points to close at 19,625.02 points.

Ahsan Mehanti at Arif Habib Corp said stocks closed bearish in post-budget consolidation, as investors weighed $27.488 billion trade deficit and concerns over likely surge in local petroleum prices.

“Oil and cement stocks outperformed on surging global crude oil prices and Rs560 billion record development spending commitments in Punjab budget FY22.”

However, he said weak global equities and investor concerns over falling rupee also played catalytic role in the bearish close.

Domestic currency would likely stay under pressure over the next few days due to growing demand, as well as higher oil prices in the international market.

As many as 403 scrips were active of which 143 advanced, 237 declined and 23 remained unchanged.

The ready market volumes stood at 1.22 billion shares compared with the turnover of 1.12 billion shares in the last trading session.

An analyst at Arif Habib Limited said market traded range bound on account of profit booking particularly in refinery, steel, cement and exploration and production (E&P) sectors.

“Technology sector failed to bounce back in the past sessions and similar downtrend was witnessed today. E&P sector saw prominence of Oil and Gas Development Company (OGDC) on the back of anticipated dividend payout, whereas fertiliser sector remained under pressure after less than anticipated takeaways from the recently announced budget,” the analyst added.

Maaz Mullat at JS Global Capital said KSE-100 index stayed sideways, making a low and high of -215 and +115 points, respectively.

“K-Electric led the volume board as media chatter suggested that the National Transmission and Dispatch Company (NTDC) recently severed additional supply of electricity to Karachi Electric (KE) due to non-payment,” he added.

Cement manufacturers from the southern region have announced an increase of Rs20 per cement bag, which resulted in the sector posting gains during the session.

From the refinery sector, Attock Refinery down 5.1 percent, National Refinery down 3.6 percent, and Pakistan Refinery down 2.7 percent lost value to close in the red region.

The federal budget presented last week has been taken as mostly positive for equities, where reduction in capital gains tax by 2.5 percent is taken as a key win by investors.

Companies reflecting highest gains included Wyeth Pakistan, up Rs39.97 to close at Rs2,196.81/share, and Indus Motor Company, up Rs27.2 to close at Rs1,346.23/share.

Companies reflecting most losses included Nestle Pakistan, down Rs68.99 to close at Rs5,730.01/share, and Sanofi Aventis, down Rs23 to end at Rs955/share.

Highest volumes were witnessed in K-electric with a turnover of 312.97 million shares. The scrip gained 45 paisas to close at Rs4.69 share.

Worldcall Telecom was second with a turnover of 147.62 million shares. It shed 26 paisas to close at Rs3.97/share.

Byco Petroleum was third with a turnover of 129.35 million shares. It gained 19 paisas to finish at Rs13.02.