PSX remains flat amid lack of triggers

KARACHI: The Pakistan Stock Exchange (PSX) experienced another flattish close for the week, with the benchmark KSE-100 index losing 38 points to close at 39,907 on Wednesday. The index gained slightly to briefly cross the 40,000-mark and hit the day’s high at 40,063 before falling to 39,825 and closing at 39,907.

A lack of interest was seen and the turnover remained exceptionally low, with around 150 million shares worth only Rs3.94 billion traded. Out of a total of 353 traded scrips, 167 advanced while 170 declines and 16 remained unchanged. Power generation and technology sectors dominated trading with 42.3m and 31.7m shares traded respectively. Foreign corporations continued buying with Rs212m worth stocks bought in the session while mutual funds remained prime sellers.

Top index point detractors were UBL (down 2%), OGDC (1.5%), HBL (1.3%), SNGP (4.9%) & MCB (1.3%), holding 152 points, while NESTLE (up 5%), DAWH (2.3%), SEARL (3%), ENGRO (1%) & KEL (3.3%) added 85 points. On the sector front, banks shed 92 points, OMCs 54 points, E&Ps 24 points, power 23 points & cement 20 points, while food added 23 points, auto assemblers 22 points, pharma 18 points & ferts 16 points.

Traded volumes however improved by 52% DoD to 147m shares while value traded jumped to $58m.

Key sectors contributing positively to the index included oil & gas sector, cement, insurance and automobile. On the contrary, commercial banks, power, fertilizer sectors failed to entice investors, said AHL Market Data. Blue eyed stocks included OGDC that added 42 points, PPL 23 points, SNGP 21 points, LUCK 16 points and UBL added 14 points to the index gain. Stocks that contributed negatively to the index included HUBC that shed 36 points, HBL that eroded 20 points, ENGRO that detracted 18 points, MCB that took away 18 points and TRG that shed 16 points from the index.

A rally was witnessed in the cement sector where LUCK (up 1.24%), DGKC (up 1.85%) and MLCF (up 1.25%) closed positively. Banking space remained under pressure throughout the day as HBL (down 0.83%), MCB (1.00%) and BAFL (0.89%) closed in the red trajectory.

E&P sector caught investors’ interest and closed higher than its previous day close where POL (up 0.56%), PPL (1.22%) and OGDC (2.01) closed in the green zone. Market volume declined by 46.5% DoD from 180.7m shares to 96.7m shares. Average traded value also declined significantly from USD 152m to USD 43.5m (-71% DoD).

Major market drivers were TRG, KEL, ANL, DSL and WTL which contributed 36.4m shares and 38% of the total volume traded.

Fertilizer sector closed negative where EFERT (down 0.02%) and FFC (0.84%) closed in the red; however ENGRO (up 0.95%) showed some relief as it closed in the green zone.