Stocks close flat amid profit-taking at highest level

KARACHI: Stocks witnessed a volatile session at the record high level, where investors opted for profit taking and the market closed flat amid falling global crude oil prices. The market briefly crossed the 86,000 mark but could not sustain at that level.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 share index closed flat with an increase of 5.3 points or 0.01 per cent to 85,669.28 points against 85,663.98 points recorded in the last session. The highest index of the day remained at 86,451.43 points while the lowest level was recorded at 85,444.31 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed at a new all-time high led by banking scrips after the SBP revised per-party exposure limits for SMEs,” adding that reports of $2.8 billion record remittances in September 24 added to the positive sentiment.”

Easing political noise, and speculations in the earnings season played a catalyst role in the positive close. However, midsession pressure remained on falling global crude oil prices, and foreign outflows.

The KSE-30 index decreased by 224.9 points or 0.82 per cent to 27,216.23 points against 27,441.13 points.Traded shares increased by 90 million shares to 596.052 million shares from 506.565 million shares. The trading value decreased to Rs31.341 billion from Rs33.049 billion. Market capital expanded to Rs11.174 trillion against Rs11.172 trillion. Of the 448 companies active in the session, 208 closed in green, 172 in red and 68 remained unchanged.

Naveed Nadeem, analyst at Topline Securities, said the KSE-100 index closed at 85,669, up 5 points or 0.1 per cent. The session experienced significant volatility, peaking at 86,451 and dipping to 85,444, largely due to profit-taking and the index's inability to sustain levels above 86,000. The market was primarily supported by local institutions' buying activity.

Key contributors to the index included MCB, LCI, BAHL, HUBC, and HBL, which collectively added 292 points. However, negative movements from FFC, EFERT, and POL deducted 215 points from the index.

The highest increase was recorded in Lucky Core Industries Limited shares, which rose by Rs114.32 to Rs1,257.56 per share, followed by Hallmark Company Limited, which increased by Rs102.50 to Rs1,348.03 per share. A significant decline was noted in Nestle Pakistan Limited, which fell by Rs75.24 to Rs6,790 per share; Hoechst Pakistan Limited followed it, which closed lower by Rs54.13 to Rs2,335.87 per share.

Brokerage Arif Habib Ltd stated that the KSE-100 index tested the 86,000-point mark before retreating to close at 85,700.HUBC announced an emergent board of directors meeting on October 10, 2024, to discuss the premature termination of its implementation, power purchase and fuel supply contracts. The government of Pakistan is seeking to terminate these contracts in October, ahead of their scheduled expiration in March 2027.

Upside momentum remains strong, particularly in the refinery sector, which saw solid gains on Wednesday. Attock Refinery Limited (ATRL) gained 2.38 per cent, National Refinery Limited (NRL) surged 6.61 per cent, and Pakistan Refinery Limited (PRL) rose 5.26 per cent. After a year of consolidation and significant drawdowns, the sector appears poised for a potential rebound.

The KSE-100 index continues to find support at 84,000 points, with higher levels remaining viable in the near term.K-Electric Ltd. remained the volume leader with 55.799 million shares which closed higher by 21 paisas to Rs3.98 per share. Hub Power Co XD followed it with 39.666 million shares, which closed higher by Rs1.50 to Rs113.42 per share.

Other significant turnover stocks included PTCL, BO Punjab, WorldCall Telecom, Kohinoor Spinning, Pak Refinery XD, Ist Capital Sec, Cnergyico PK and PIA Holding Company.In the futures market, 313 companies recorded trading, of which 162 increased, 145 decreased and 6 remained unchanged.