Stocks stay the flattish course in unadventurous trade

Stocks on Wednesday failed to snap the flattish streak despite an energy-led upswing as investors are taking no chances fearing the ongoing political conflict may escalate into a full-blown national crisis, dealers said.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index gained 0.24 percent or 102.25 points to close at 42,204.03 points, while volumes increased to 438.146 million shares, as compared to 409.741 million shares in the previous session. KSE-30 was also up 0.33 percent or 57.95 points to end at 17,691.26 points.

Topline Securities in a market review said equities closed positive in line with regional indices. “The market opened on a positive note making an intraday high of 248 points and traded in a range of 319 points through the day, the brokerage said.

Higher international oil prices led the exploration and production sector to close 0.9 percent higher meanwhile financial sector supported the index where UBL and HBL contributed 22 points, the Topline report said.

Muhammad Saeed Khalid, head of research at Shajar Capital, said during the day the market remained sluggish, despite higher volumetric activity.

The benchmark index showed strong participation in tech and oil stocks mainly on the recovery of oil prices and higher export services by technology companies, he said.

“Investors accumulated mainly in the textile and tech stocks mostly on strong fundamentals where we have noticed mutual funds, individuals, and other corporates are increasing their portfolio in the respective sectors,” Khalid added.

As many as 393 scrips were active, of which 208 saw upward movement, 162 downward, and 23 remained unchanged.

A A Soomro, managing director at KASB Securities, said flattishness has become a norm at the bourse and the story was no different on Wednesday.

A slight uptick was witnessed after reports that opposition parties had deferred the date of handing over resignations to December 31, 2020, he said.

“It seems opposition is gradually picking up the pace contrary to initial expectations of 13th December” Soomro said adding, “However, Prime Minister’s statement hints that government has a backup plan it would not placate the opposition benches.” This was a sign of comfort for investors today, he said.

“Interest was positively seen in technology sector, especially TRG and Netsol, while buying was also seen in refiners, i.e., National Refinery and Attock Refinery, whereas the main board remains dull and flattish,” said Soomro.

Analyst Ahsan Mehanti from Arif Habib Corporation said stocks closed bullish led by oil, cement, and banking scrips on strong earnings outlook.

Mid-session pressure remained on concerns over economic uncertainty, foreign outflows, and ballooning circular debt.

Upbeat data on oil, cement sales, exports for November 2020, and surging global equities helped stocks close in green, Mehanti added.

Umair Naseer from BMA Equity sales team said, "We continue to like cyclical stocks including technology, steel, cement, and auto sectors, which will continue to remain outperformers”.

Unilever Foods, up Rs1,002 to close at Rs14,500/share, and Nestle Pakistan, strengthening by Rs150 to finish at Rs6750/share made highest gains in the day.

Pakistan Tobacco, down Rs32.50 to close at Rs1,567.50/share, and Sanofi-Aventis, losing Rs22.50 to close at Rs777.50/share, were the main losers.

TRG Pakistan Limited led volumes with 33,734 million shares. The scrip gained Rs2.85 to end at Rs75.72/share.

Netsol Technology witnessed the lowest trade with 10,465 million shares and gained Rs8.23 to end at Rs117.99/share.