PSX flat ahead of political showdown in Rawalpindi

• Pakistan stocks opened on a positive note.
• Profit-booking, politics cut the rally short.
• Caution advised as uncertainty prevails.

KARACHI: Stocks scarcely changed Wednesday in a caution-driven session, marked by wild swings as market players remained wary of the political events unfolding in Rawalpindi amid a general trigger drought.

Pakistan Stock Exchange’s (PSX) main gauge, KSE-100 Shares Index, lost 48 points or 0.11% to settle down at 42,880 points after making an intraday high of 111 points.

JS Research in its market wrap said stocks opened on a positive note, but due to rising political temperature and profit-taking closed a tad lower.

“Going forward we recommend investors to remain cautious at current levels and wait for fresh buying,” the brokerage said.

Topline Research in a note said profit-taking was witnessed soon after Hub Power Company notified the bourse that the company as a Joint Venture [partner] and sponsor of China Power Hub Generation Company (CPHGC) provided security in the form of a Standby Letter of Credit (SBLC) — which is a form of guarantee — of $150 million in favour of CPHGC to satisfy any funding shortfall.

“This SBLC was to expire on November 23, 2022. If the SBLC is not renewed 15 days prior to the expiry, which is the case now, CPHGC’s lender shall have the right to call upon the SBLC,” the brokerage added.

This development led the HUBC to close 3.63% down.

Traded volume and value for the day stood at 138.2 million shares, down 29%, and Rs5.09 billion, down 25%. WorldCall Telecom was the volume leader with 16.46 million shares. 

Other significant volume generators were TPL Properties (-1.3%), Hub Power Company Limited (-3.6%), BankIslami Pakistan Limited (5.6%) and TRG Pakistan (1.0%).

Rupee also could not sustain yesterday's momentum and relapsed, adding to investor worries. 

The local unit closed at 223.81 against the greenback falling by Re0.39, or 0.17%, compared to Tuesday’s close of 223.42 in the interbank market.

Darson Research said after kicking off on a positive note, the local equity bourse hit a bump in the road and trade came to a crawl.

“The benchmark index swayed between positive and negative territories throughout the day in the range-bound session," the Darson analysts said.

Technology and communication, and oil and gas exploration sectors closed in the green, while power, generation and distribution and commercial banks saw a sell-off.