Stock market remains flat on lack of investors’ interest

Stock market remains flat on lack of investors’ interest

The Pakistan stock market witnessed a subdued trading session on Friday as investors showed a lack of interest in blue-chip stocks.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 37,521 points, a marginal increase of 5 points from the previous day’s closing at 37,516 points.

Analysts from Arif Habib Limited reported that following a significant slide of around 500 points on the previous day, the KSE-100 index did experience a brief dip of 209 points during the day. However, it managed to close in positive territory, gaining 5 points (unadjusted) by the end of the session.

One of the highlights of the day was the debut of Interloop Limited (ILP) on the PSX, with a traded volume of 14.3 million shares. Despite a trading volume that captured market attention, ILP closed slightly below its opening and subscription price of 46.10.

ILP secured the top spot on the volumes table, followed by UNITY right shares, which registered a trading volume of 13.7 million shares. Interestingly, the lack of investor interest in blue-chip stocks was evident as none of the blue-chip companies made it to the top 10 volumes chart.

Mainstream sectors like Cement and Banks, typically popular among investors, ranked 4th and 5th in terms of traded volume. The clarification by the Finance Minister regarding the rupee-to-dollar parity failed to attract investors, and overall sentiment in the market remained subdued.

Sectors contributing to the overall market performance included Banks (-26 points), Pharma (-7 points), Chemical (-7 points), Exploration & Production (E&P) (+10 points), and Engineering (+9 points).

Despite a decline in trading volumes from 127.9 million shares to 101.7 million shares (a 21 percent decrease Day-on-Day), the average traded value increased from US$ 23.9 million to US$ 26.6 million (an 11 percent increase Day-on-Day).

Key stocks that significantly contributed to the day’s trading volumes included ILP, UNITYR1, KEL, WTL, and PAEL, collectively forming 46 percent of the total volumes.

Stocks that positively influenced the market included NESTLE (+11 points), MARI (+9 points), PAKT (+9 points), EFERT (+8 points), and KEL (+8 points). Conversely, stocks that had a negative impact included MCB (-17 points), KAPCO (-10 points), HBL (-8 points), FABL (-6 points), and FFC (-6 points).

As the market continues to grapple with fluctuations and investor sentiment remains cautious, the coming sessions will be closely monitored for any potential shifts in trends and renewed investor interest.