KSE-100 drops 308 points amid correction after three-day rally

By Our Correspondent
January 16, 2025
A broker talks on phone as he looks at an index board showing the latest share prices at the PSX in Karachi on February 10, 2023. — AFP
A broker talks on phone as he looks at an index board showing the latest share prices at the PSX in Karachi on February 10, 2023. — AFP

KARACHI: Stocks lost upward momentum on Wednesday after a three-day rally, as the benchmark KSE-100 index decreased by 308 points amid consolidation.

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The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index decreased by 308.46 points or 0.27 per cent to 114,495.71 points against 114,804.17 points recorded in the last session. The highest index of the day remained at 115,773.39 points, while the lowest level was recorded at 114,298.29 points.

Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Pressure witnessed at the PSX amid foreign outflows and uncertainly over outcome of government-PTI talks.”

He said that expectations over the cautious SBP policy rate cut, rupee instability and uncertainty over the outcome of slippages on IMF tax collection targets played a catalyst role in the bearish activity.

The KSE-30 index decreased by 99.16 points or 0.27 per cent to 36,003.11 points against 36,102.28 points.

Traded shares increased by 70 million shares to 659.431 million shares from 589.463 million shares. The trading value rose to Rs39.64 billion from Rs32.584 billion. Market capital narrowed to Rs14.197 trillion against Rs14.222 trillion. Of the 455 companies active in the session, 176 closed in green, 225 in red, and 54 remained unchanged.

Analyst Maaz Mulla at Topline Securities said the local bourse witnessed a consolidation phase, characterised by notable volatility. The index reached an intraday high of 969 points and a low of 505 points before closing at 114,945, marking a decline of 308 points (0.27 per cent). “This reflects cautious investor sentiment amidst mixed market signals,” he said.

In the power sector, HUBC drew significant investor interest following news of the federal cabinet’s approval of revised agreements with 14 independent power producers (IPPs).

Meanwhile, GAL from the auto sector extended its positive momentum, driven by the successful launch of the new pickup truck, JAC T9 Hunter. Bookings were temporarily closed due to robust demand, further boosting investor confidence.

Key gainers included FFC, HUBC, BAFL, GLAXO, and ABOT, collectively contributing 339 points to the index. Conversely, losses in ENGROH, MARI, SRVI, UBL and SYS collectively wiped out 514 points.

The highest increase was recorded in Hoechst Pakistan Limited, which rose by Rs120.49 to Rs2,850.13 per share, followed by Rafhan Maize Products Company Limited, which increased by Rs62.94 to Rs9,080.33 per share. A significant decline was noted in Service Industries Limited, which fell by Rs111.56 to Rs1,437.44 per share; Philip Morris (Pakistan) Limited followed it, which closed lower by Rs56 to Rs733.76 per share.

Brokerage Arif Habib Ltd stated that the PSX experienced a correction on Wednesday following a three-day advance that saw the KSE-100 index rise from 112,000 to 115,000. The index remained range-bound.

Despite the day’s correction, the KSE-100 remains confined within its recent trading range, with investors cautiously monitoring market developments.

WorldCall Telecom remained the volume leader with 68.666 million shares, which closed higher by 2 paisas to Rs1.8 per share. Pak Refinery, with 56.858 million shares, followed it, which closed higher by Rs1.99 to Rs43.49 per share.

Other significant turnover stocks included Cnergyico PK, TRG Pak Ltd, Hascol Petrol, K-Electric Ltd, Fauji Foods Ltd, Citi Pharma Ltd, Flying Cement and Hub Power Co.

In the futures market, 298 companies recorded trading, 113 of which increased and 185 decreased.

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