Stocks sluggish ahead of FATF verdict

Stocks were barely buoyed on Thursday as profit-booking weighed on trade with no stimuli in sight a day ahead of the grey list decision, dealers said.

The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index gained 61.84 points or 0.13 percent to 47,962.54 points.

The index traded between a day-high of 48,117.91 points and a low of 47,899.68 points.

The market closed in the positive territory after three consecutive sessions; however, thin trade continued for the fourth session of the week.

Analyst Ahsan Mehanti at Arif Habib Corp said stocks closed higher led by selected scrips across the board amid hopes of a likely positive outcome of FATF’s (Financial Action Task Force) plenary meeting this week for Pakistan.

Higher global crude oil prices over $70 and rupee stability helped stocks end up in the green zone, Mehanti said.

Government’s setting GDP growth target at 4.8 percent in the financial year 2022, progress in resolving Rs2.1 trillion circular debt crisis, and strong remittances data surging by 34 percent year-on-year reaching $2.5 billion in May 2021 also impacted the sentiments.

KSE-30 Share Index also inched up 39.22 points or 0.20 percent to close at 19,298.60 points.

Turnover increased by 19 million shares to 638.84 million against 619.11 million shares. Trading value, however, dropped to Rs16.37 billion against Rs18.64 billion.

Market capital ticked up to 8.358 trillion from 8.353 trillion.

Out of 421 active scrips, 207 closed in green, 187 in red, whereas 27 ended neutral.

Muhammad Arbash, an analyst at Topline Securities said the day kicked off on a positive note; however, some profit taking in last hour reversed the early gains.

Investor interest was mainly witnessed in cements and financial sector where CHCC, LUCK, UBL, and HBL emerged as major gainers, he added.

Highest gains were recorded in the shares of Island Textile, which rose Rs55 to Rs2,400 per share, followed by Hinopak Motors that strengthened Rs37.16 to Rs532.72 per share.

Major losses were suffered by Rafhan Maize, down Rs100 to close at Rs9,400 per share, followed by Sapphire Fiber that shed Rs32.50 to close at Rs767.50 per share.

Brokerage Arif Habib Ltd in a note said the market continued trading in a narrow range, whereby investors kept booking profits post budget announcement and especially in the rollover week.

Banking sector stocks helped the index prop up; however, selling pressure in technology, refinery, and cement sector stocks kept the upside of index in check, the brokerage said.

Day’s best turnover was recorded in stocks of WorldCall Telecom, Pace (Pak) Ltd, Silk Bank Ltd, TPL Corp Ltd, Ghani Global Glass, Hum Network, Ghani Glo Hol, K-Electric Ltd, TPL Properties XD, and Azgard Nine.

WorldCall Telecom led volumes with 97.54 million shares with a loss of 21 paisas to close at Rs3.65 per share, trailed by Pace with 35.66 million shares, while the scrip gained Re1.0 to end at Rs6.85 per share.

Future contracts turnover shrank to 259.19 million from 283.26 million shares on Wednesday.