Stocks ended weaker as the risk-averse investors remained cautious Friday after Finance Minster Ishaq Dar unveiled over Rs 4 trillion budget for financial year 2015-16. As a market observer put it, the pre-budget uncertainty trimmed the KSE-100 index by 73.25 points to 34,012.49 compared to Thursday's 34,085.74. The benchmark index moved both ways to hit the intraday high and low of 34,147.39 and 33,970.50 points, respectively. The trading turnover was recorded healthy at 333.65 million shares, lower than 362.21 million of the previous day.
The traded value also contracted to Rs 11.98 billion from Rs 14.16 billion. Of the total 368 scrips traded, 194 posted gains, 148 registered losses and 26 remained unchanged. The market capitalisation also settled in the red accumulating to Rs 7.326 trillion against Rs 7.344 trillion of the earlier trading session.
Foreign investors were positive and made a net buying of $5.173 million on the week's last trading day. TRG Pakistan, plummeting to Rs 25.21, led the volumes with 38.59 million shares. Others to follow were Pak Elektron 30.5 million, Southern Electric 25 million, K-Electric 19.9 million, Japan Power 18.2 million, Dewan Cement 16.3 million, Dewan Salman 14.3 million, Dewan Motors 12.9, Ghani Automobiles 10.5 million and DG Khan Cement 8 million shares.
Futures trade plunged staying almost flat on 35 million contracts. "Stocks closed bearish amid cautious activity on pre-budget uncertainty," said Ahsan Mehanti at Arif Habib Corp who cited weak global crude prices and falling banking spreads as the day's catalyst. Investors, the analyst said, awaited announcements speculating in leveraged stocks and cement, auto, textile sector scrips which are likely to gain in the federal budget.
"Investors chose to remain on the sidelines ahead of the budget and were largely seen booking profits," viewed Muhammad Mobeen of JS Global. Topline analyst Samar Iqbal observed on the bourse a ranged-bound session with declining volumes. "Investors preferred to stay cautious ahead of federal budget," she said, adding that however, the textile sector rallied in hope for favourable budgetary announcement. EFOODS witnessed profit-taking on the back of investors' fear for the exemption withdrawal on import of raw material. The market remained mixed throughout the day ending marginally lower by 73 points, Mobeen said.
The cement scrips, he said, posted healthy gains on the back of expectations of a healthy allocation towards the PSDP fund in the upcoming budget. DGKC and MLCF ended 1.8 and 0.6 percent higher. While the oil sector remained largely weak due to stabilising global oil prices, the banking issues were seen under pressure on the back of lower NIMs expectations on falling discount rates translate into subdued investor interest.