Dull trading at PSX as investors await economic clarity

• Index traded in a narrow band, closing 97 points lower

KARACHI: In the absence of a clear path for the future, trading at the Pakistan Stock Exchange (PSX) on Monday remained lazy and witnessed a downturn. The session saw indices trade in a narrow band, eventually closing lower by 97 points.

On the economic front, the budget deficit in the first quarter of the current fiscal year has expanded to Rs541.7 billion as compared to the gap of Rs433 billion in the same period last year. Meanwhile, in the international market, crude oil prices were seen under pressure.

After gathering 274.84 points, the KSE 100 index touched an intraday high of 41,144.09. The index then rebounded and touched an intraday low of 40,664.17 after losing 205.11 points. It then settled lower by 97.73 points at 40,771.55. The KMI 30 index gained 366.72 points to reach an intraday high but failed to hold the gains, as it ended lower by 314.40 million at 69,462.43. Meanwhile, the KSE All Share index fell short by 63.66 points to close at 29,437.06.

The market volumes improved slightly from the preceding session and were recorded at 135.32 million. Power Cement Limited (POWER +3.06 per cent) led the volume chart with 14.47 million shares exchanging hands, followed by Lotte Chemical Pakistan Limited (LOTCHEM -2.04 per cent) and Pak Elektron Limited (PAEL -4.99 per cent). The scripts had traded 10.32 million and 10.10 million shares respectively.

The cement sector lost 1.42 per cent from its cumulative market capitalisation. Lucky Cement Limited (LUCK) declined by -2.18pc, D G Khan Cement Company Limited (DGKC) by -0.83pc and Bestway Cement Limited (BWCL) by -0.73pc. Similarly, Fauji Cement Company Limited (FCCL -1.19pc) and Maple Leaf Cement Factory Limited (MLCF -1.64pc) also ended the day negative.

According to the news reports, Pakistan Suzuki Motors Company Limited (PSMC -0.09pc) is said to have purchased 80 acres of land to establish a second plant and to manufacture an additional 100,000 vehicles a year. The total investment is expected to amount to $460 million.