Stocks close flat amid pressure near the earnings season close

KARACHI: Stocks witnessed a range-bound session on Friday and closed flat as investors opted for profit-taking later in the session amid pressure near the earnings season close despite of a rally in the pharmaceutical sector.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 share index increased by 8.01 points or 0.01 per cent to 78,801.43 points against 78,793.41 points recorded in the last session. The highest index of the day remained at 79,173.94 points while the lowest level was recorded at 78,760.03 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed flat amid pressure near the earnings season close and futures rollover.” He said that earlier gains wiped out on concerns about surging power tariffs inviting industrial closures and a falling rupee. “Falling bond yields and reports of record sales in the pharma sector played a catalyst role in the bullish close,” he said.

The KSE-30 index decreased by 27.52 points or 0.11 per cent to 24,994.85 points against 25,022.36 points.Traded shares decreased by 122 million shares to 682.409 million shares from 804.261 million shares. The trading value rose to Rs18.168 billion from Rs16.975 billion. Market capital expanded to Rs10.512 trillion against Rs10.486 trillion. Of 451 companies active in the session, 192 closed in green, 199 in red and 60 remained unchanged.

Nabeel Haroon, an analyst at Topline Securities, said the KSE-100 largely traded in a positive zone during the trading session, however, some profit-taking was observed in the closing hours of trade, as the index declined to close on a flat note 78,901 (up by 0.01 per cent).

The pharmaceutical sector remained in limelight, where eight companies out of the 12 listed companies gained to close at their respective upper circuit. “Investors’ interest in the pharmaceutical sector can be attributed to the Pharma conference arranged by Topline Securities Limited where four companies participated to give investors overview of the sector -- companies were expecting double-digit revenue growth following the deregulation of non-essential drug prices in April 2024,” he said.

The highest increase was recorded in Unilever Pakistan Foods Limited, which rose by Rs323 to Rs17,500 per share, followed by Hoechst Pakistan Limited, which increased by Rs172.40 to Rs1,896.40 per share. A significant decline was noted in Bata Pakistan Limited, which fell by Rs25.24 to Rs1,703.64 per share; Philip Morris (Pakistan) Limited followed it, which closed lower by Rs24.43 to Rs466.82 per share.

Mohammed Waqar Iqbal, an analyst at JS Research, said the market exhibited range-bound activity, with the KSE-100 index fluctuating within a narrow bank of 413 points. Trading volumes were concentrated in small-cap stocks.

He said, “Looking ahead, consolidation is likely to continue, though any positive economic developments could uplift market sentiment. Therefore, any dip could present a buying opportunity.”

Kohinoor Spinning remained the volume leader with 81.711 million shares which closed lower by Rs1.07 to Rs10.92 per share. K-Electric Ltd. followed it with 71.849 million shares, which closed higher by 26 paisas to Rs4.43 per share.

Other significant turnover stocks included Pace (Pak) Ltd., WorldCall Telecom, F Nat Equities, Flying Cement, Agritech Limited, Symmetry Group Ltd, Pak Refinery and Hascol Petrol.In the futures market, 326 companies recorded trading, of which 104 increased, 218 decreased and four remained unchanged.