Fertiliser sector mutes optimism, KSE ends flat

KSE

The benchmark KSE-100 index closed flat (gaining 0.1 per cent) after rallying as much as one per cent earlier in the day. Market opened on a positive note on the back of strong regional markets. However, profit taking during the day stalled the positive momentum somewhat. Volumes improved slightly as 46 million shares were traded. ENGRO closed four per cent down – a 32 month low – owing to gas curtailment issues. Furthermore MTL closed at its upper limit amid rumours that GST on tractors might be removed.
After an initial surge which saw KSE-100 index climb 144 points in intra-day trading, the index quickly retreated and abandoned its gains to end up flat for the day. The morning burst of energy emanated from fertiliser sector with rumours of a urea price hike by Engro, which were eventually deemed to be false causing the sector stocks to end up in the red zone by the end of trading.
The daily trading volume came in at 45 million shares with FFC and LOTPTA perched on top of the leader board. LOTPTA enjoyed a positive trading session as it gained four per cent over its last closing price as international PTA-PX margins have begun improving since the beginning of the month, when they slumped to annual low. With the quarter coming towards an end, we may see savvy investors loading their Christmas baskets with their favorite bargain equities, which appear plentiful at this point due to recent beat down taken by the market as a whole, said Ali Hussain, Senior Investment Analyst at HMFS.
KSE 100 index closed at 11477.12 levels with the gain of 12.51 points, while KSE 30 index lost 56.32 points to close at 10598.16 levels. All Share index closed at 7942.03 levels after gaining 5.24 points. Total 107 scrips advanced 114 declined and 88 remain unchanged out of total 309 scrips traded.



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