PSX suffers worst single-day drop in history, plunges 4pc

KARACHI: Pakistan stocks witnessed a black Tuesday with the market going through a bloodbath and the biggest ever single-day decline of 2,534 points or 4.11 percent amid profit-taking and pre-poll uncertainty, traders said.

Khurram Schehzad, an analyst at Alpha Beta Core, said Pakistan Stock Exchange recorded the biggest single-day decline of 2,534 points or 4.11 percent. “PSX has dropped 11 percent or 7,256 points from the last peak of 66,427 points,” he said.

The Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index closed lower by 2,534.12 points or 4.11 percent to 59,170.98 points against 61,705.09 points recorded in the last session. The highest index of the day remained at 61,634.55 points while the lowest level was recorded at 59,026.81 points.

Ahsan Mehanti, an analyst at Arif Habib Corp, said, “PSX witnessed a record fall amid panic during the future contracts rollover and pre-poll uncertainty.”

Reports of IMF disapproving non-cash adjustments to resolve power sector circular debt, govt raising gas prices of the fertilizer sector to unify rates and margin calls on over-leveraging at the PSX played a catalyst role in record fall, he said.

The KSE-30 index also decreased by 836.94 points or 4.07 percent to 19,724.89 points against 20,561.83 points.

Traded shares decreased by one million shares to 670.859 million shares from 671.550 million shares. The trading value increased to Rs17.129 billion from Rs13.709 billion. Market capital narrowed to Rs8.608 trillion against Rs8.947 trillion. Out of 369 companies active in the session, 43 closed in green, 315 in red and 11 remained unchanged.

Analyst Naveed Nadeem at Topline Securities said equities started the day on a negative trend, experiencing a “bloodbath” as selling pressure aggressively countered bullish momentum.

The KSE 100 Index saw its highest-ever decline, plummeting by 2,534 points or (-4.11 percent) in a single day and closing at 59,171 points.

This downturn can be attributed to profit-taking ahead of the calendar year-end, coupled with aggressive reductions by leveraged investors, he said.

Major negative contributions during the trading hours came from stocks in the power, OMCs, and banks sectors.

Companies like HUBC, PPL, OGDC, HBL, and PSO collectively incurred a loss of 763 points. On a positive note, stocks such as IBFL, MCB, and FATIMA contributed to a combined gain of 18 points.

The highest increase was recorded in Sapphire Fibres Limited, which rose by Rs109.12 to Rs1,566 per share, followed by Ibrahim Fibres Limited, which increased by Rs23.45 to Rs363.90 per share.

A significant decline was noted in Unilever Pakistan Foods Limited, which fell by Rs355 to Rs21,000 per share, followed by Nestle Pakistan Limited, which closed lower by Rs106 to Rs7,800 per share.

Arif Habib Ltd, a brokerage, said 60k KSE-100 and 20K KSE-30 are significant levels and we are now on alert to watch for signs of bottoming and the resumption of upside.

“For the remainder of the week, we will be watching for the main indices KSE100, KSE30 and KSEALL to show signs of divergence to signal a tradable low is in place,” it reported.

K-Electric Ltd. remained the volume leader with 97,358 million shares which closed lower by 74 paisas to Rs4.44 per share. Fauji Foods Ltd followed it with 72.516 million shares, which closed lower by 18 paisas to Rs1.36 per share.

Other significant turnover stocks included B.O. Punjab, Cnergyico PK, Fauji Foods Ltd, Gul Ahmed, Pak Elektron, Kohinoor Spinning, Pak Petroleum and Pak Int. Bulk. A total of 315 companies recorded future shares, of which only 3 increased, 310 decreased and 2 remained unchanged.