Stocks snap four-day winning streak

KARACHI: Stocks snapped the four-day winning streak as the KSE-100 index after a volatile session finished flat with a minor loss of 36 points or 0.1 per cent at 44,460 points.

The market opened in the red taking cue from regional bourses which remained under pressure due to drop in international oil prices. During the day, the market took investors on a roller coaster ride, making intraday high and low by 144 and 228 points.

Market saw profit booking in power, oil and gas marketing companies and fertiliser sector stocks. Cement and steel sector stocks bounced back today after the sell-off a day earlier. Cement sector showed signs of recovery as local dispatches posted growth of 17.5pc in December with total dispatches of 4.788 million tonnes.

Further, the government’s hint to approve an amnesty scheme for developers and builders for a period of six months also helped cement perform well. Chemical sector stocks also performed well on close of quarter and anticipation of posting better earnings.

Refinery sector enjoyed the upward trend for the day as Attock Refinery Ltd, National Refinery Ltd and Pakistan Refinery Ltd (PRL) closed in positive, where PRL hit the upper circuit. Moreover, the power sector continued its rally for the third day on the back of the government’s decision to resolve the perennial circular debt as Pakgen Power Ltd, Nishat Power Ltd, Nishat Chunian Power Ltd, Lalpir Power Ltd, and Kot Addu Power Company (Kapco) finished at their upper circuits. In the technology sector, TRG Pakistan and Avanceon Ltd closed in the green.

Foreign investors sold shares worth $0.46m. Traded Volumes increased from 540.8m shares to 582.4m shares (up 8pc day-on-day). Trading value decreased by 9pc to $151m. Hum Network Ltd was the volume leader.

Sector-wise, technology and communication was the top traded sector with volume of 136m shares. Scrip-wise, major positive points contributors to the index came from TRG, Kapco, Habib Bank Ltd, Searle and MCB Bank which cumulatively contributed 120 points to the index while Hub Power Company, Pakistan Petroleum Ltd, Oil and Gas Development Company, Pakistan State Oil and Pakistan Oilfields Ltd dragged the index down by 201 points.