Pakistan stocks end flat amid lack of triggers

Pakistan stocks on Thursday ended flat amid a shortage of triggers with foreign selling still haunting the investors; although buyers were seen rushing to grab undervalued shares, dealers said.

The National Clearing Company of Pakistan Limited recorded a net foreign selling of $4.48 million. 

“Foreigners sold stocks (in net) worth more than $30 million in the last four sessions (Friday to Wednesday),” said Ovais Ahsan at JS Global Research. “Their sale is really a big concern for local investors who also sold stocks holding negative outlook and bought oversold stocks.”

The Pakistan Stock Exchange’s (PSX) benchmark 100-share Index lowered 14.21 points, or 0.05 percent, to close at 30,751.82 points.  KSE 30-share Index dropped 31.55 points, or 0.18 percent, to 17,807.82 points.

Volumes, however, surged 28 percent to 135.80 million shares over the previous session. Trading value rose 15 percent to Rs7.68 billion. The market capitalisation was trimmed three billion rupee to Rs6.54 trillion.

Out of a total of 330 active stocks, 162 closed up, 142 ended down and 26 finished with no change.

The stocks, which played a major role in pulling down the index, included MCB Bank, United Bank Limited, Engro Corporation and Fauji Fertilizer Bin Qasim.

Ahsan said investors sold fertiliser stocks on a significant decline in the international urea prices. “The downtrend might convince local manufacturers not to increase prices in future even if the government revises up the feed gas tariff,” he said.

The reports of upward revision have been doing round for quite a long time.

Likewise, investors offloaded stocks at the banking counter on reports that the central bank may reduce interest rate in the next monetary policy announcement.

Buyers, however, took positions in the Oil and Gas Development Company, Pakistan Petroleum Limited, Pakistan Oilfields Limited, Pakistan State Oil, which came down to lucrative buying levels.  Imran Ali at Invest and Finance Securities said the reports of participation by government-owned institutions gave a boost to volumes.

Faisal Bilwani at Elixir Securities said Pakistan equities closed a little changed as the market struggled to find a clear direction amid routs in regional markets and global commodities.

A positive open on institutional buying was followed by a slow-paced decline with foreign selling in the index names a major cause of concern, Bilwani said.  Despite volatile global crude and the benchmark Arab light testing fresh recent lows below $21.5/barrel, Pakistan Oilfields closed with maximum a gain of five percent as mostly people see that crude prices have bottomed out.

TRG Pakistan was the volume leader with 14.26 million shares. Its share value decreased Rs1.34 to Rs25.49.

This was followed by K-Electric with 14.40 million shares. The stock price inched down three paisas to Rs6.99. Maple Leaf Cement recorded a trade in 6.77 million shares and it inched up 64 paisas to Rs82.87.