Stocks flat for 2nd day as loan remains elusive

KARACHI: Stocks on Wednesday trod water for second session, as International Monetary Fund (IMF) huddle to finalise the coveted loan was moved to February, traders said.

Pakistan Stock Exchange's (PSX) benchmark KSE-100 Share Index closed inched up 67.28 points or 0.15 percent to 44,955.05 points with the top and the bottom of the day being 45,031.21 and 44,709.30 points.

The benchmark index unlocked on a gloomy note in the morning and dropped 175.12 points in intraday trading before barely ending positive.

Analysts pinned this flat finish on the abrupt rescheduling of International Monetary Fund’s (IMF) executive board meeting from January 28 to February 2 and Pakistan’s slipping by 16 points to 140/180 on Corruption Perceptions Index (CPI).

Topline Securities in a note said equities started the day on a negative note as worries over further delay in the IMF programme won’t come to an end.

The index mostly remained in the red zone; however, investors’ interest in technology stocks in the last trading hours supported the index to end in the green zone, the brokerage said.

Technology, chemical, E&P, and banking sector’s stocks contributed positively, according to Topline Research.

TRG, COLG, POL, and BAHL cumulatively added 121 points, while FFBL, SYS, and FFC together lost 47 points to profit-taking.

KSE-30 Share Index also closed higher by 42.04 points or 0.24 percent to 17,738.31 points against 17,696.27 points.

Traded shares, dropped by 70 million shares to 137.30 million from 207.04 million. Traded value decreased to Rs5.36 billion from Rs8.11 billion. Market capital expanded to Rs7.711 trillion from Rs7.696 trillion. Out of 333 actives in the session, 130 posted gains, 179 losses, while 24 remained unchanged.

Ahsan Mehanti, an analyst at Arif Habib Corp, said, stocks closed higher as investors weigh SBP (State Bank of Pakistan) policy affirming steady rates and falling bond yields.

Government’s revis FY2021 growth rate to 5.4 percent, global crude oil price surge, and extension of IMF board review over EFF (Extended Funding Facility) lifted the stocks, Mehanti said.

The highest increase was recorded in the share price of Unilever Foods, which rose by Rs1,562 to Rs22,409 per share, followed by Colgate Palm, up Rs171.99 to close at Rs2,466 per share.

Rafhan Maize became the worst loser by shedding Rs300 to close at Rs9,600 per share, followed by Sapphire Fiber, down Rs53.80 to end at Rs812 per share.

JS Research in a note said after two negative sessions, bulls made a comeback.

FFBL announced CY21 EPS of Rs4.95 but did not announce any payout with the result, which caused it to close at the lower circuit. “Going forward, we recommend investors to keep a ‘sell on strength’ stance until the market closes above 45,500 levels,” the JS Research said.

TRG Pakistan Ltd was the top volume-maker with 18.80 million shares, followed by Ghani Global Holdings with 6.01 million shares.

Stocks that recorded significant turnover included TPL Properties, WorldCall Telecom, Cnergyico PK, Fauji Fertilizer Bin Qasim, Telecard Limited, Hascol Petrol, DS Industries Ltd, and Kot Addu Power Ltd.

Future contracts turnover swelled to 180.26 million from 150.91 million on Tuesday.