KARACHI: Despite the IMF Board’s approval of the Extended Fund Facility (EFF), stocks fell sharply on Thursday amid uncertainty over the outcome of government-backed tax reforms to unlock the $7 billion IMF bailout.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 share index decreased by 589.95 points or 0.72 per cent to 81,657.97 points against 82,247.92 points recorded in the last session. The highest index of the day remained at 82,905.73 points while the lowest level was recorded at 81,552.66 points.
Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed lower on institutional profit-taking amid uncertainty over the outcome of tax reforms to unlock the $7 billion IMF bailout and challenges over ongoing political and institutional tensions.”
He said the weak rupee, a slump in global crude oil prices, and concerns for the surging power sector’s circular debt played a catalyst role in the bearish close.The KSE-30 index decreased by 246.28 points or 0.94 per cent to 25,875.13 points against 26,121.41 points.
Traded shares rose by one million shares to 423.942 million shares from 422.163 million shares. The trading value dropped to Rs17.671 billion from the previous Rs18.380 billion. Market capital narrowed to Rs10.713 trillion against Rs10.784 trillion. Of the 444 companies active in the session, 125 closed in green, 263 in red and 56 remained unchanged.
Maaz Mulla, an analyst at Topline Securities, said that amid the ongoing battle between bulls and bears, the bears prevailed as the KSE-100 index fluctuated sharply. On the news front, the International Monetary Fund (IMF) board approved a $7 billion Extended Fund Facility (EFF) for Pakistan, providing a critical boost to the nation’s struggling economy.
Key market movers included heavyweights such as SRVI, BAFL, POL, BAHL and NBP, collectively adding 118 points to the index. On the contrary, HUBC, FFC, UBL, ILP and MARI together dragged the index down by 426 points.
The highest increase was recorded in Sapphire Textile Mills Limited, which rose by Rs108.85 to Rs1,257.62 per share, followed by Hallmark Company Limited, which increased by Rs93.39 to Rs1,027.29 per share. A significant decline was noted in Unilever Pakistan Foods Limited, which fell by Rs254.31 to Rs17,145 per share; Sapphire Fibres Limited followed it, which closed lower by Rs119.90 to Rs1,310 per share.
Brokerage Arif Habib Ltd stated that the KSE-100 index opened with a strong gap up to 82.7k following the IMF’s approval of Pakistan’s $7 billion loan programme. However, the market faced a swift sell-off, mirroring the price action seen after the recent SBP rate cut.
Buyers who entered on the back of the IMF news found themselves in drawdown, prompting further selling pressure.As losses are booked into support, a resumption of the market’s upward trajectory is anticipated, with near-term support seen in the range of 80.5k-81.5k for the KSE-100.
PIA Holding Company remained the volume leader with 36.327 million shares which closed lower by Rs1.15 to Rs20.91 per share. WorldCall Telecom followed it with 33.114 million shares, which closed lower by 2 paisas to Rs1.23 per share.
Other significant turnover stocks included Kohinoor Spinning, TRG Pak Ltd, Pace (Pak) Ltd, K-Electric Ltd, Secure Logistics Gro, Fauji Cement, Hub Power Co XD and Oil & Gas Dev. In the futures market, 345 companies recorded trading, of which 253 increased, 84 decreased and 8 remained unchanged.