Bulls or Bears, stocks accommodated none at Pakistan Stock Exchange (PSX) on Friday, as lack of triggers kept investors sentiments in check, in a choppy trade.
On Friday, the benchmark kse-100 opened on a positive note and touched intra-day high at 45,471.35 level after gaining 241.17 points. However, selling pressure emerged by midday, which wiped off most of the gains. But, nevertheless, the index crawled up in the positive zone as by the closing bell the benchmark index gained 75.45 points to clock at 45,305.63 level.
During the session the market witnessed lack of investor interest, but higher expectations in upcoming financial results in key sectors was the sole reason which lent support to the bourse and aided its uptrend.
Financial results of important companies due in the coming week kept investor interest alive, although trading volumes remained thin. Investors also showed some activity in cyclical stocks including cement, steel and auto which performed relatively better. Small-cap stocks were favoured by investors in comparison with blue chips.
However, sentiments were dampened over the new set of lockdown measures announced by the National Command and Operation Centre (NCOC) across the country in the wake of rising Covid-19 cases.
During the session, market Capital increased by Rs.0.62 Billion, while total value traded decreased by 3.86 Billion to Rs.8.74 Billion.
The volume chart was led by Ghani Global Limited followed by Telecard Limited and TRG Pakistan Limited. The scrips exchanged 21.52 million, 21.45 million and 12.2 million shares, respectively.
According to the National Clearing Company of Pakistan Limited (NCCPL) foreign investors were net sellers of $1.12 million worth of equities. Among local investors, Banks, Individuals and Companies led the selling chart, which offloaded $0.42 million, $0.33 million and $0.27 million worth of equities.
During the session, sectors which lifted the index were Commercial Banks with 27 points, Technology & Communication with 19 points, Fertilizer with 18 points, Automobile Assembler with 13 points and Automobile Parts & Accessories with 10 points. Among the scrips, the most points added to the index was by ENGRO which contributed 16 points followed by TRG Pakistanwith 15 points, Habib Bank Limited with 9 points, Hub Power Company with 7 points and Pak Suzuki Motor Company Limited with 7 points.
However, the sectors which dented the index were Tobacco with 11 points, Oil & Gas Marketing Companies with 10 points, Cement with 5 points, Textile Composite with 4 points and Pharmaceuticals with 2 points. Among the scrips, the most points taken off the index was by Pakistan Tobacco Company Limited which stripped the index of 11 points followed by DG Khan Cement with 7 points, Fauji Cement Company Limited with 5 points, Pakistan Petroleum Limited with 5 points and Fauji Fertilizer Bin Qasim Limited with 4 points.
Weekly Review: Virus fears kept Index in check, but strong earnings expectations extended support
During the week, stocks at the local bourse witnessed an upward trend, as improving economic indicators and strong corporate earnings expectations kept the investor sentiments buoyant amidst rising virus concerns.
The week opened on a bearish note, with index declining by over 200 points on Monday, as spike in COVID cases and talks of a likely lockdown dimmed investor hopes. Additionally, country-wide protests following the arrest of the leader of Tehreek-e-Labaik Pakistan (TLP) also cautioned the investors.
However, positive economic data released during the week supported market activity. Upbeat remittances number , which surged by 26 per cent in comparison to previous year during 8M Fiscal year 2021, and encouraging large scale manufacturing (LSM) data, which rose by 7.5 per cent in comparison to previous year during first 8 months of FY21, triggered investor optimism.
The benchmark index ended the week with a gain of 120 points to settle at 45,306 level. The market continued to show resistance near the 45,500 mark as the index touched a high of 45,471 points and a low of 44,757 points. The trading volumes shrink by 10 per cent at 368 million shares, whereas traded value also fell by 18 per cent to average at $ 100 million.