Stocks close flat on pre-budget uncertainty

KARACHI: The Pakistan Stock Exchange (PSX) witnessed range-bound activity and closed the last day of the week flat with a slight decline, as investors remained cautious amid pre-budget uncertainty.

The benchmark KSE 100 Index dropped by 50.37 points, or 0.04 per cent, to 119,102.67 points, down from 119,153.04 points recorded in the last session. The highest index of the day remained at 119,542.52 points, while the lowest level was recorded at 118,665.26 points.

Analyst Ahsan Mehanti at Arif Habib Ltd said stocks closed lower amid pre-budget uncertainty and concerns over weak exports.He said investor concerns regarding IMF-driven new tax measures proposed for exporters and industrials, the National Assembly’s approval of the Off-Grid (CPPs) Levy Bill impacting the industrial sector, and rupee instability played a catalytic role in the market’s negative close.

The KSE-30 index decreased by 24.71 points or 0.07 per cent to 36,301.75 points from 36,326.46 points. Traded shares dropped by 251 million shares to 338.003 million shares from 589.772 million shares. The trading value decreased to Rs18.511 billion from Rs30.813 billion. Market capital expanded to Rs14.385 trillion against Rs14.383 trillion. Of the 459 companies active in the session, 183 closed in green, 232 in red and 44 remained unchanged.

Nabeel Haroon, an analyst at Topline Securities, said a range bound session was observed at the exchange on last trading session of the week, as the index traded between its intraday high of +389 points and intraday low of -488 points with low volumes to finally close at 119,102 (down by -0.02 per cent).

Top positive contributions to the index came from ENGROH, ATRL, PKGP, MEBL and PSEL, as they cumulatively added +280 points to the index. On the other hand, top negative contributions to the index came from FFC, MCB, SYS, MARI, PPL, HBL, HUBC and EFERT, as they weighed down the index by -257 points. Traded value wise ATRL (Rs1.49 billion), FCEPL (Rs1.01 billion), MARI (Rs564 million), HUBC (Rs557 million) and PPL (Rs505 million) dominated the trading activity.

The highest increase was recorded in PIA Holding Company Limited B, which rose by Rs1,823.93 to Rs20,063.21 per share, followed by Unilever Pakistan Foods Limited, which increased by Rs204 to Rs23,100 per share. A significant decline was noted in Rafhan Maize Products Company Limited, which fell by Rs110.46 to Rs10,827.59 per share; Nestle Pakistan Limited followed it, which closed lower by Rs35.70 to Rs7,018.72 per share.

Analyst Mohammed Waqar Iqbal at JS Global said dull activity was observed on the last trading day of the week at the PSX, as investors adopted a cautious stance and preferred to stay on the sidelines ahead of the federal budget.

Trading volumes remained thin throughout the day, with major participation seen in sideboard stocks. “Going forward, we expect the market to continue consolidating; hence, investors are advised to wait for dips before taking fresh positions,” he advised.

Big Bird Foods Ltd remained the volume leader with 32.684 million shares, which closed higher by Rs2.08 to Rs53.86 per share. WorldCall Telecom, with 19.363 million shares, followed it, which closed lower by 2 paisas to Rs1.25 per share.

Other significant turnover stocks included Descon Oxychem, At-Tahur Ltd, Ghani Glo Hol, PTCL, K-Electric Ltd, Frieslandcampina, Kohinoor Spining, and Pak Refinery. In the futures market, 318 companies recorded trading, 68 of which increased, 243 decreased and 7 remained unchanged.