The Pakistan Stock Exchange witnessed a range-bound session on Tuesday, as the benchmark KSE-100 index, after oscillating in a narrow range, managed to post modest gains to settle in the green zone.
Investors mainly opted to stay on the sidelines as they remained sceptical of the deteriorating macroeconomic outlook besides rising inflation figures in the country.
Earlier, the session commenced on a positive note as the benchmark KSE-100 index witnessed a rally during the initial hours. The index touched an intra-day high of 43,339 points during the first half of the session.
However, the second session witnessed profit-taking and the index declined to touch an intra-day low of 43,018 points. From that point onwards, the index witnessed minor fluctuations to finally settle with modest gains.
At close, the benchmark KSE-100 index recorded an incline of 38 points, or 0.09%, to settle at 43,078.14 points.
Topline Securities, in its report, said that the market opened on a positive note as the KSE-100 index made an intra-day high of 299 points, however, profit-taking was observed during the later hours of the trade, as the index declined to settle at 43,078 points level.
“Today (May 31) was the MSCI rebalance effective date where Semi Annual Index Review (SAIR) changes announced earlier during the month were implemented,” Topline said.
In MSCI (Morgan Stanley Capital International) SAIR, OGDC (Oil and Gas Development Company) was made part of MSCI Frontier Standard Index and HBL (Habib Bank Limited) was moved from MSCI Frontier Standard Index to MSCI Frontier Small Cap Index.
Engro Polymer and Chemicals Limited and Indus Motor Company were newly included in MSCI Frontier Small Cap Index, Topline added.
Major contributions to the index came from Hub Power Company, Millat Tractors Limited, Systems Limited, Pakistan Oilfields Limited and Oil and Gas Development Company, as they cumulatively added 164 points to the index.
On the flip side, Lucky Cement, MCB Bank Limited, Habib Metropolitan Bank, The Searle Company and Engro Fertilisers Limited lost value to weigh down on the index by 93 points, Topline said.
A report of Arif Habib Limited stated that the market remained range bound throughout the day, due to concerns over rising inflation numbers and tightening of money supply.
The benchmark KSE-100 index opened in the positive zone but lacklustre activity was witnessed. Volumes remained dry in the main board although hefty volumes were witnessed in the third-tier stocks.
Sectors contributing to the performance included power (+64.2 points), exploration and production (+56.8 points), technology (+21.7 points), autos (+20.1 points) and fertiliser (+16.4 points).
JS Global analyst Mohammad Waqar Iqbal said that the bourse witnessed range bound activity.
The KSE-100 index moved between 321 points, touching a high at 43,339 and a low at 43,018.
Top volume leaders were Silk Bank Limited, Pakistan International Bulk Terminal, Pakistan Refinery Limited, Pak Elektron Limited and WorldCall Telecom.
“Going forward, the equity market may remain lacklustre due to the budget announcement which is scheduled on June 10, 2022,” the analyst said, adding: “Investors are likely to approach a wait-and-see strategy as any news on new tax impositions may be negative for the market.”
“We advise to remain at bay till clarity emerges on the same.”
Overall trading volumes increased to 285.3 million shares compared with Monday’s tally of 187.5 million. The value of shares traded during the day was Rs7.4 billion.
Shares of 344 companies were traded. At the end of the day, 147 stocks closed higher, 173 declined and 24 remained unchanged.
Silk Bank Limited was the volume leader with 71.6 million shares, gaining Rs0.22 to close at Rs1.5. It was followed by Pakistan International Bulk Terminal with 35.6 million shares, gaining Rs0.43 to close at Rs6.58 and Pak Refinery with 21.1 million shares, gaining Rs0.17 to close at Rs17.99.
Foreign institutional investors were net buyers of Rs498.4 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.