Stocks succumb to political scares for second day

Stocks on Tuesday snailed to end another sluggish session on a weak note in a row as investors feared a political face-off was likely in the brewing, traders said.

Country’s capital market benchmark, KSE-100 Shares Index gave up 104.79 points or 0.23 percent to close at 45,507.41 points, testing a high of 45,761.21 and a low of 45,471.99 points.

Political uncertainty has been permeating in the country, which held investors back from taking new positions.

Though, with the exception of rupee devaluation, other economic indicators were not against the market, but trade could not move up.

According to analysts, earnings season is about to start and may provide some support to the market.

Currently, market is on the lookout for major buying triggers.

In a recent development, Pakistan’s textile exports increased to a record high but political uncertainty and rupee devaluation kept the sentiment under cloud.

As a result, there was no improvement in the volumes and value of the trade.

Topline Securities in its daily market review said it was a directionless day for equities and the benchmark index moved in the band of 289 points.

The recent rise in global oil prices kept the market performance in check, the brokerage said in its analytical report.

KSE-30 Shares Index also nudged lower by 16.39 points to 17,925.77 points.

Analyst Ahsan Mehanti at Arif Habib Corp said equities at Pakistan Stock Exchange (PSX) closed lower on weak rupee and concerns regarding ongoing political noise.

Uncertainty over the SBP (State Bank of Pakistan) policy announcement next week build up a selling pressure that resulted in a lower close, Mehanti said adding that energy stocks however outperformed on a surge in global crude oil prices.

Trade volume thinned by 8 million shares to 165.13 million from 173.49 million.

The trading value slightly rose to Rs7.56 billion from Rs6.10 billion.

Market capital shrunk to Rs7.803 trillion from Rs7.822 trillion.

Out of 350 companies active in the session, 129 posted gains, 199 losses, while 22 remained unchanged.

The highest increase was recorded in shares of Unilever Foods, which rose by Rs409 to Rs20,899 per share, followed by Nestle Pakistan that increased by Rs90 to Rs5,500 per share.

Bata Pakistan led the losers of the day by falling Rs99.90 to Rs2,000 per share, while Ismail Industries, shedding Rs39 to close at Rs486 per share, ended up as the second worst-hit stock.

JS Research in its market wrap said rising Covid cases and lack of positive triggers resulted in a range-bound activity at the bourse.

Major laggards were HUBC, LUCK, BAHL, SCBPL, and CHCC, while top volume leaders were TRG, WTL, HUBC, TELE, and CNERGY. “Going forward, buy on dips strategy is advised especially in oil and gas exploration, oil marketing and fertiliser sectors,” the brokerage said.

TRG Pak Ltd led volumes by registering a trade of 20.68 million shares, with WorldCall Telecom, posting 17.67 million shares, right behind it.

Stocks that recorded significant turnover included Hub Power Comapny, Telecard Limited, Cnergyico PK, Avanceon Ltd, Ghani Global Holdings, Al-Shaheer Corp, Hum Network, and Pakistan Refinery.

Turnover in the future contracts decreased to 52.47 million shares from 56.11 million shares.