Stocks start week with loss of 1,100 points amid global equity turmoil

KARACHI: Stocks fell sharply over 1,100 points across the board on Monday amid turmoil in the global stock markets and fears over a recession in the US.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 share index decreased by 1,141.5 points or 1.46 per cent to 77,084.49 points against 78,225.98 points recorded in the last session. The highest index of the day remained at 78,330.1 points, while the lowest level was recorded at 76,943.24 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks fell across the board on global equity selloff amid fears over the US recession and concerns over Middle East tensions.”He said the weak rupee, a slump in global crude oil prices, and concerns over the likely impact on exports of US recession fears played a catalyst in the bearish close.

The KSE-30 index decreased by 379.01 points or 1.5 per cent to 24,851.94 points against 25,230.94 points.Traded shares rose by 58 million shares to 501.191 million shares from 443.483 million shares. The trading value increased to Rs21.057 billion from Rs20.497 billion. Market capital narrowed to Rs10.27 trillion against Rs10.37 trillion. Of 442 companies active in the session, 129 closed in green, 261 in red and 52 remained unchanged.

Naveed Nadeem, an analyst at Topline Securities, said the stock market followed the global downtrend, with the KSE-100 Index plunging by 1,141 points, or 1.46 per cent, to settle at 77,084.

During the session, the index fluctuated between a high of 78,330 and a low of 76,943 points.He said the downturn was largely influenced by declines in the power, exploration and production (E&P), IT and banking sectors, with key contributors such as HUBC, HBL, POL, SYS, and BAHL accounting for a combined 484-point drop.

The highest increase was recorded in Ismail Industries Limited shares, which rose by Rs66.98 to Rs1,418.08 per share, followed by Khyber Textile Mills Limited, which increased by Rs37.21 to Rs410.08 per share. A significant decline was noted in Unilever Pakistan Foods Limited, which fell by Rs149.5 to Rs17,850.5 per share. Sapphire Fibres Limited followed it, which closed lower by Rs117.96 to Rs1,480.10 per share.Brokerage Arif Habib Ltd stated on Monday that global markets experienced significant declines, with Pakistan’s stock market holding up better than much of the region. Japan’s Nikkei index hit a circuit breaker, plunging by 12 per cent on the day, amid widespread selling pressure across major stock exchanges.

The KSE-100 index fell below the critical support level of 78,000 points, raising concerns over future upside prospects. Analysts suggest that large global moves could trigger margin calls as the yen carry unwinds, further impacting local markets.

Market experts indicate that until the KSE-100 regains the 78,000 level, pressure on the downside is likely to persist. The current market environment necessitates careful monitoring as investors navigate these challenging conditions.

Kohinoor Spinning remained the volume leader with 86.045 million shares, which closed higher by Re1 to Rs5.4 per share. Yousuf Weaving followed it with 32.79 million shares, which closed higher by Re1 to Rs4.14 per share.Other significant turnover stocks included WorldCall Telecom, Pace (Pak) Ltd, TPL Properties, Cnergyico PK, The Organic Meat, Pak Refinery, Fauji Foods Ltd and Engro Fert.In the futures market, 344 companies recorded trading, of which 83 increased, 260 decreased and one remained unchanged.