Stocks barely changed on regional uncertainty

Stocks on Tuesday were flattened by new virus jitters and Afghan power transition uncertainty despite upbeat remittance data, traders said.

Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Shares Index finished with a gain of 33.42 points or 0.07 percent to close at 47,480.50 points, hitting a session high and a low of 47,585.18 points and 47,439.89 points respectively.

Analyst Ahsan Mehanti at Arif Habib Corp said stocks showed recovery led by selected scrips across the board in late session institutional support on speculations ahead of corporate results in the earnings season.

However, he said, mid-session pressure remained on rupee instability and concerns for regional uncertainty.

Higher global crude oil prices, tax relief for the auto sector, surge in local cement, fertiliser prices and upbeat exports data for June 2021 helped the index stay buoyed.

KSE-30 index also closed just 15.92 points or 0.08 percent higher at 19,077.66 points.

Traded shares increased 22 million shares to 496.82 million against 474.99 million shares. Trading value rose to Rs16.24 billion against Rs14.32 billion. Market capital slightly improved to Rs8.296 trillion from Rs8.294 trillion. Out of 412 active names, 172 advanced, 222 declined, while 18 remained unchanged.

Haris S Khan, analyst at Topline Securities, said, the index closed almost flat.

The market participants initially cheered a higher remittance number for June 2021, up 8 percent month-on-month, but Covid related concerns coupled with the Afghan conflict continued to keep the market gains in check, he said.

Major positive contribution came from PSX, SYS, TRG, and BAHL, which cumulatively added around 71 points to the benchmark index.

Highest increase was recorded in shares of Unilever Foods, which rose Rs281 to reach Rs16,470 per share, followed by Khyber Tobacco that gained Rs32.62 to finish Rs467.59 per share.

Major decline was noted in shares of Nestle Pakistan, which fell Rs59.99 to end at Rs5,815.01 per share, followed by Bata that lost Rs45 to close at Rs1,690 per share.

A report by brokerage Arif Habib Limited said investors maintained a cautious approach towards building positions, in the wake of CGT liability, due to be settled by mid of the month, whereby investors anticipated selloff by other than corporate and institutional investors.

Technology sector led the index with NETSOL hitting upper circuit and brisk trading seen in TRG & SYS, the brokerage said.

It added that the power sector remained muted due to concerns over Petroleum Division's stance on payments to IPPs under Power Policy of 2002.

WorldCall Telecom, Ghani Global Glass, TPL Corp Ltd, Fauji Foods Ltd, TPL Properties, Treet Corp, Citi Pharma Ltd, Loads Limited, Telecard Limited and Al-Shaheer Corp were among the day’s well-traded stocks.

WorldCall Telecom was the volume leader with 48.03 million shares. The telecom lost 12 paisas to end at Rs3.52 per share. It was followed by Ghani Global Glass with 37.59 million shares that gained Rs1.85 to close at Rs28.44 per share.

Turnover in the future contracts decreased to 66.37 million shares from 77.08 million shares traded in the previous session.