KSE-100 loses 740 points amid nationwide internet outage

KARACHI: The KSE-100 index suffered a sharp decline on Wednesday, plummeting over 740 points in the final hour of trading amid a nationwide internet outage. Analysts attributed the sudden drop to panic selling as investors struggled with limited market data.

A nationwide internet outage crippled Pakistan on Wednesday afternoon. Users across the country reported widespread connectivity issues, ranging from slow speeds to complete blackouts. Internet monitoring group NetBlocks confirmed the disruption, classifying it as a nation-scale event.

The index had traded in a narrow range earlier in the day, but the afternoon disruption exacerbated investor anxiety. While the Pakistan Stock Exchange (PSX) denied any trading impact from the outage, traders reported challenges in executing trades due to slow connectivity.

Stocks closed sharply lower around 1.0 per cent as investors also showed concerns over the S&P Global rating and political noise in the country. The KSE-100 index decreased by 741.82 points or 0.94 per cent to 77,886.99 points against 78,628.81 points recorded in the last session. The highest index of the day remained at 79,151.82 points while the lowest level was recorded at 77,810.17 points. Despite the internet issues, some analysts pointed to institutional selling as a primary driver of the decline.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed sharply lower on investor concerns over S&P Global keeping ratings at CCC+, citing reliance on foreign assistance for debt obligations, political risks to impact the economy, and structural reforms.”

He said that the falling rupee, political noise and protests over surging industrial power tariff played a catalyst role in the bearish close.The KSE-30 index decreased by 242.66 points or 0.96 per cent to 25,087.45 points against 25,330.11 points.

Traded shares increased by 69 million shares to 382.597 million shares from 313.085 million shares. The trading value dropped to Rs14.638 billion from Rs17.615 billion. Market capital narrowed to Rs10.367 trillion against Rs10.454 trillion. Of 442 companies active in the session, 118 closed in green, 254 in red and 70 remained unchanged.

Nabeel Haroon, an analyst at Topline Securities, said a volatile session was observed as the index traded between its intraday high of 523 points and intraday low of 819 points to finally close at 77,887 (down by 0.94 per cent).

Major positive contributions to the index came from FFC, FATIMA, Engro, PAKT and Nestle, as they cumulatively contributed 90 points to the index. On the other hand, UBL, SYS, LUCK, OGDC and POL lost value to weigh down on the index by 321 points.

The highest increase was recorded in Nestle Pakistan Limited shares, which rose by Rs112.70 to Rs6,965.50 per share, followed by Mehmood Textile Mills Limited, which increased by Rs27.18 to Rs665.95 per share.

A significant decline was noted in Unilever Pakistan Foods Limited, which fell by Rs312.14 to Rs18,000 per share, Sapphire Fibres Limited followed it, which closed lower by Rs98.99 to Rs1,499.92 per share.

Brokerage Arif Habib Ltd stated the market followed through on Tuesday’s declines with additional downside, closing below the 78,000 mark.

The KSE-100 is now within the 77,500-78,000 weekly support zone, a critical area where bullish market sentiment would typically see buyers emerge. To confirm a low is in place and unlock upside potential, the index needs to regain the 80,000 mark.

Several key stocks are at important levels, and the remainder of the week should indicate whether these levels will hold, and the market will rally or if they will give way, suggesting that the 82,000 high was an interim top. Indus Motor Company announced its entry into the export market, shipping vehicles to other Toyota-affiliated companies. Pakistan Hotels Developers Limited (PHDL) completed the sale of Regent Plaza to the Sindh Institute of Urology and Transplantation (SIUT) Trust. United Bank Limited reported a 17% increase in quarterly profit to Rs15.27 billion.

WorldCall Telecom remained the volume leader with 81.162 million shares, which closed higher by 9 paisas to Rs1.25 per share. Kohinoor Spining followed it with 24.698 million shares, which closed higher by 26 paisas to Rs4.08 per share.

Other significant turnover stocks included TPL Properties, Engro Fert, Fauji Fert Bin, Waves Home App, Synthetic Prod, K-Electric Ltd, Silk Bank Ltd and The Searle Company.In the futures market, 323 companies recorded trading, of which 59 increased, 260 decreased and 4 remained unchanged.