Shares close flat amid range-bound trading

KARACHI:

The Pakistan Stock Exchange (PSX) saw limited movement and closed flat on Thursday as weak economic numbers and a delay in the approval of an International Monetary Fund (IMF) loan program weighed on investor interest.

The market saw significant volatility, ranging between an intraday high of 79,154.30 and a low of 78,578.02. Institutional investors resorted to profit booking in blue-chip stocks.

Market players were awaiting the State Bank of Pakistan’s (SBP) policy rate announcement on September 12.

They expect the central bank to cut interest rates further as inflation has eased. Already, the SBP has made a cumulative cut of 250 basis points in the last two monetary policy meetings.

“Stocks closed flat on institutional gains in blue-chip stocks,” said Ahsan Mehanti, MD of Arif Habib Corp.

“Investors’ concerns over weak fertilizer and oil sales data in August, coupled with uncertainty over the terms of the IMF’s $7 billion loan facility, led to pressure on the market in the last session,” he said.

“Finance minister’s confirmation that he received external funding guarantees, speculation about the SBP’s rate decision and upbeat data showing a 21% drop in the August trade deficit were the catalysts for a slightly positive close on the PSX.”

At the close, the KSE-100 registered a meager gain of 15.33 points or 0.02% to settle at 78,863.34.

Topline Securities, in its report, wrote that the KSE-100 rose 15 points and showed significant volatility throughout the session, reaching a high of 79,154 and a low of 78,578.

Trading remained robust, largely fueled by shares of United Bank, Kohat Cement, MCB Bank, Habib Metropolitan Bank and Fauji Fertiliser, which together added 254 points to the index, Topline added.

Arif Habib Limited (AHL), in its commentary, noted that intraday gains exceeded 79k, but the KSE-100 closed below that level. In the index, 35 stocks rose while 63 fell.

Top contributors to the index were United Bank (+3.01%), Kohat Cement (+9.45%) and MCB Bank (+1.54%). In contrast, Mari Petroleum (-1.62%), Bank AL Habib (-1.44%) and Hub Power (-0.61%) were the biggest decliners.

Kohat Cement announced its FY24 results, where it reported earnings per share (EPS) of Rs 45.41, representing a 53% year-on-year growth. For the fourth quarter, EPS was Rs 12.16, reflecting a five-fold increase compared to the same quarter last year.

The company also disclosed plans to buy back up to 12 million common shares, which make up 6% of all outstanding shares and 20% of the free float. The takeover will begin on October 23.

“The KSE-100 is currently up 0.5% weekly as it enters the final session of the week. A close above 79k will trigger moves towards reaching 80k,” AHL added.

JS Global analyst Mohammed Waqar Iqbal commented that the stock market saw limited activity, with the KSE-100 closing at 78,863, up 15 points. Total transaction value fell to $51.3 million.

“The market awaits final approval from the IMF’s executive board. We expect limited activity to continue and recommend investors take advantage of any downside as a buying opportunity in the cement and textile sectors,” the analyst added.

Total trading volume fell to 770.5 million shares compared with Wednesday’s tally of 969.8 million. The value of shares traded during the day was Rs 14.3 billion.

Shares of 444 companies were traded. Of these, 148 stocks closed higher, 252 declined and 44 remained unchanged.

WorldCall Telecom was the volume leader with 87.1 million shares traded, shedding Rs 0.03 to close at Rs 1.34. It was followed by Pace Pakistan with 66.6 million shares, gaining Re1 to close at Rs 5.66 and Kohinoor Spinning Mills with 42.1 million shares, losing Rs 1.12 to close at Rs 10.29.

During the session, foreign investors bought shares worth Rs 41.8 million, according to NCCPL.