Stocks flat in thin trade; rollover adjustments weigh

Stocks were flat on Thursday as rollover week adjustments set in with investors, especially foreign funds, observing a day of caution, closely watching global markets going down with coronavirus scares and its implications for world economy, dealers said.

Pakistan Stock Exchange’s (PSX) benchmark KSE-100 shares index gained 0.01 percent or 4.80 points to close at 41,903.50 points level, while KSE-30 shares index followed suit with a low of 0.24 percent or 46.54 points to end at 19,346.47 points level.

Analyst Ahsan Mehanti from Arif Habib Corporations said, “Stocks closed flat amid thin trade led by banking and cement stocks as investors weighed strong financial results and reports of likely FATF grey list exclusion in Paris review next month”.

“Recovery in global crude oil price, upbeat July-December FY19 data on FDI (foreign direct investment), foreign inflows, rupee stability, and investor speculations over Rs150 billion target in SOEs (state-owned entities) privatisation programme kept the stocks buoyed at the PSX,” Mehanti added.

Of 349 active scrips, 193 went up, 136 retreated, and 20 remained unchanged. The ready market volumes shrank to 162.237 million shares, as compared to a turnover of 197.137 million shares in the previous session.

Salman Ahmad, head of institutional sales at Aba Ali Habib Securities, said, “Adjustment sets in owing to rollover week which would end on Friday”. “Foreign funds participation was dull because of the coronavirus as investors are currently in a cautious mode after a global rout.”

Furthermore, market after a long spell of negative endings closed on a positive note because of short covering but the market overall lacked positive news to build fresh rally,” Salman added. Due to coronavirus outbreak the global markets especially Asian stock markets were in the minus zone.

Japanese, Chinese, Taiwanese, Hong Kong, Malaysian, and Indian stock markets were down in the range of 100 to 700 points. Moreover, since the virus outbreak, oil prices have also fallen sharply in more than a week. The US and British crude oil prices have suffered a decline of 10 dollars per barrel respectively.

According to media reports US stock indexes were set to open lower on Thursday as the coronavirus epidemic fanned concerns of a slowdown in China’s economy.

The flu-like virus, which has taken 170 lives in China and spread to over 15 countries, has disrupted global travel and led several companies to suspend operations in China, rattling financial markets around the world. Arif Habib Limited in their daily market roundup stated, “Lucky Cement’s result at the opening bell, brought some relief to the sellers in the past couple of sessions in which its share price came down from Rs500. Its price rebounded after touching day’s low of Rs468.80 and closed Rs484.50”.

“Cement sector largely traded positive, same as fertiliser sector stocks,” the brokerage added. The highest gainers were Sapphire Textile, up Rs45.10 to close at Rs865.11/share, and Bata Pakistan, up Rs34.98 to finish at Rs1,934.99/share.

Companies that booked highest losses were Colgate Palmolive, down Rs143 to close at Rs2,457/share, and Rafhan Maize, down Rs95 to close at Rs6,900/share. Bank of Punjab recorded the highest volumes with a turnover of 17.965 billion shares, whereas the scrip gained Rs0.23 to end at Rs13.45/share.

The lowest volumes were witnessed in Fauji Cement recording a turnover of 3.924 million shares, while the scrip gained Rs0.04 to end at Rs16.64/share.