Tech scrips lead gains amid range-bound trading at PSX
The benchmark of Pakistani shares stayed range-bound on Monday as investors looked for clarity on the appointment of a new army chief, upcoming repayment of $1 billion Eurobond and a review of the International Monetary Fund loan programme.
Topline Securities said equities closed slightly up with major positive contributions coming in from technology shares.
Trading opened in the positive territory but a lack of investors' confidence limited the index's movement within a narrow band, said Arif Habib Ltd. Mainboard volumes remained dry while third-tier stocks posted decent volumes.
Investors preferred to book profits on the higher side as a lack of positive triggers and macroeconomic concerns dampened their mood. As a result, the KSE-100 index settled at 42,761.19 points, up 30.95 points or 0.07 per cent from the preceding session.
The trading volume decreased 29.8pc to 132.9 million shares while the traded value went down 9.7pc to $20.5m on a day-on-day basis.
Stocks contributing significantly to the traded volume included WorldCall Telecom Ltd (14.1m shares), TRG Pakistan Ltd (10.2m shares), Unity Foods Ltd (8.7m shares), Ghani Chemical Ltd (8.5m shares) and Ghani Global Holdings Ltd (7.7m shares).
Sectors that contributed to the index performance were technology and communication (97 points), commercial banking (17 points), miscellaneous (9.7 points), transport (6.4 points), oil and gas marketing (six points).
Companies registering the biggest increase in their share prices in absolute terms were Allawasaya Textile and Finishing Mills Ltd (Rs168.73), Mehmood Textile Mills Ltd (Rs55), Nestle Pakistan Ltd (Rs45), Khyber Tobacco Company Ltd (Rs29.92) and Blessed Textiles Ltd (Rs27).
Shares that declined the most in rupee terms were Unilever Pakistan Foods Ltd (Rs250), Sanofi-Aventis Pakistan Ltd (Rs44.99), Pakistan Tobacco Company Ltd (Rs29.99), the Thal Industries Corporation Ltd (Rs21.50) and Khyber Textile Mills Ltd (Rs16.92).
Foreign investors were net buyers on Thursday as they purchased shares worth 0.15m. Defence Minister Khawaja Asif announced on Monday that the process of making appointments to the top slots of the Pakistan Army had begun.
The defence minister made the announcement in a tweet, adding that the process would be completed soon in line with all constitutional requirements.
Separately, in an informal talk with reporters in Islamabad, Asif ruled out reports of a deadlock over the name of the new army chief.
"There is no deadlock. Once the summary is received, then a discussion will be held," the senior PML-N leader said. The defence minister said the prime minister would take the army leadership into confidence, following which a decision would be taken. "Currently, there are five to six senior-most candidates. But no decision has been taken as yet on the names."
Asif said that consultations over the current state of affairs were taking place on a daily basis. "I had also informed the media earlier that the process [of appointments] would start on Monday," he said.
He also went on to say that the government was not facing "any pressure" and was also not in any haste. The minister said that a "dossier" and a summary would be sent to the Prime Minister House. "Subsequently, the prime minister will formalise everything and send it to the president."
When asked to comment on when a formal decision could be expected, the minister responded: "Maybe by tomorrow or the day after."
Chief of Army Staff Gen Qamar Javed Bajwa's tenure is ending on Nov 29, but the appointment of new chief is likely to take place before Nov 27, the day when one of the candidates is going to retire.