KARACHI: Panic selling gripped the stock market following Prime Minister Shehbaz Sharif’s visit, which failed to restore investor confidence amid concerns over the economic outlook and uncertainties surrounding non-filer trading regulations, analysts said.
PM Shehbaz Sharif and senior government officials visited the Pakistan Stock Exchange (PSX) during the session, underscoring the government’s commitment to economic growth and capital market reforms.
The PSX’s benchmark KSE-100 index decreased by 1,904.23 points or 1.64 per cent to 114,148.46 points against 116,052.68 points recorded in the last session. The highest index of the day remained at 117,750.23 points, while the lowest level was recorded at 113,847.04 points.
Ahsan Mehanti, an analyst at Arif Habib Corp, said panic selling dominated the PSX after the prime minister’s visit failed to restore investor confidence, as concerns lingered over macroeconomic stability and non-filer trading regulations.
Mid-session support emerged following the prime minister’s assurances regarding improving economic indicators and macroeconomic stability. However, selling pressure intensified towards the close.
Key factors driving the bearish sentiment included rupee instability, rising political tensions and uncertainty surrounding Pakistan’s ability to meet IMF structural benchmarks required for the release of the next loan tranche.
Traded shares increased by 307 million shares to 1,099.982 million shares from 792.77 million shares. The trading value dropped to Rs32.466 billion from Rs39.694 billion. Market capital narrowed to Rs14.316 trillion against Rs14.520 trillion. Of the 464 companies active in the session, 118 closed in green, 293 in red and 53 remained unchanged.
Analyst Maaz Mulla at Topline Securities said the local bourse started the day with positive sentiment as investor enthusiasm was fuelled by the prime minister’s visit to the PSX. This optimism led the index to reach an intraday high of 1,697 points. However, profit-booking dominated the later half of the session, pulling the index to an intraday low of 2,205 points. Ultimately, the market closed at 114,148, down by 1,904 points or 1.64 per cent.
The decline in the index was primarily driven by UBL, PPL, SYS, Mari and OGDC, which together contributed to a loss of 659 points. ENGROH, FFC and SRVI helped offset the losses, adding 184 points to the index. Market participants exhibited caution during the session as profit-taking ensued after recent market rallies, reflecting a mix of optimism and near-term risk aversion.
The highest increase was recorded in JDW Sugar Mills Limited, which rose by Rs82.27 to Rs904.95 per share, followed by Rafhan Maize Products Company Limited, which increased by Rs67.77 to Rs8,954.94 per share. A significant decline was noted in Hallmark Company Limited, which fell by Rs68.23 to Rs789.61 per share; Nestle Pakistan Limited followed it, which closed lower by Rs61.85 to Rs7,282.23 per share.
Brokerage Arif Habib Ltd said that the PSX faced a sharp pullback, as the KSE-100 index, after climbing to an intraday high of 117,750 points, closed lower following a strong sell-off, hitting a session low of 113,800 points.
In corporate developments, WorldCall Telecom Limited (WTL PA) announced that GlobalTech plans to establish a centre of excellence focused on artificial intelligence (AI) and big data in Pakistan, signalling a push towards technological advancement.
Despite the mid-week decline, the KSE-100 remains range-bound, trading between 111,000 and 118,000 points, as investors await clarity on macroeconomic policies and corporate earnings.
WorldCall Telecom remained the volume leader with 520.199 million shares, which closed higher by 8 paisas to Rs1.79 per share. Cnergyico PK, with 41.301 million shares, followed it, which closed lower by 35 paisas to Rs7 per share.
Other significant turnover stocks included Fauji Foods Ltd, Sui South Gas, Pak Refinery, K-Electric Ltd., BO Punjab, Pak Elektron, Big Bird Foods Ltd and Maple Leaf.In the futures market, 298 companies recorded trading, 48 of which increased and 250 decreased.