Stocks down 367 points amid political noise

KARACHI: Stocks closed lower for the second consecutive session on Tuesday, as investors continued profit-taking amid political noise.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 share index decreased by 366.86 points or 0.45 per cent to 81,483.64 points against 81,850.50 points recorded in the last session. The highest index of the day remained at 82,010.10 points while the lowest level was recorded at 81,107.39 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed under pressure amid political noise and a weak rupee.”He said that the government decision to review and terminate power purchase agreements (PPAs) with independent power producers (IPPs) over capacity payment issue, surging circular debt and concerns over likely further action on banks for dollar manipulation played a catalyst role in the bearish close.

The KSE-30 index decreased by 74.83 points or 0.29 per cent to 25,902.55 points against 25,977.37 points.Traded shares dropped by 31 million shares to 369.62 million shares from 400.31 million shares. The trading value dropped to Rs17.062 billion from Rs18.690 billion.

Market capital narrowed to Rs10.685 trillion against Rs10.708 trillion. Of the 427 companies active in the session, 127 closed in green, 246 in red and 54 remained unchanged.Maaz Mulla, an analyst at Topline Securities, said the market witnessed another bearish session, as the KSE-100 index, succumbed to selling pressure, despite opening on a positive note.

The index plunged to an intraday low of 743 points, eventually closing at 81,483, marking a 366-point (0.45 per cent) decline.

This downward shift was largely driven by profit-taking, particularly in key stocks such as HUBC (-4.25 per cent) and EFERT (-1.99 per cent), which reshaped the market sentiment. A broad sell-off in HUBC, EFERT, MCB, PPL, and BAFL collectively dragged the index down by 400 points.

The highest increase was recorded in Ismail Industries Limited, which rose by Rs146.54 to Rs1,896.67 per share, followed by Rafhan Maize Products Company Limited, which increased by Rs57.50 to Rs7,300 per share.

A significant decline was noted in Nestle Pakistan Limited, which fell by Rs52.05 to Rs6,906.02 per share, Service Industries Limited followed it, which closed lower by Rs36.23 to Rs1,112.80 per share.

Brokerage Arif Habib Ltd stated that selling pressure in FTSE names kept the KSE-100 under stress for much of the session, dipping into key support levels before buyers emerged toward the close.

Projections for September 2024 CPI show a YoY increase of 7.3 per cent, the lowest since January 2021. This reflects a notable decline from August 2024’s inflation rate of 9.6 per cent YoY.

The outlook remains positive, with IMF news expected to dominate upcoming sessions. The market is expected to hold support and aim for new highs as buyers return to key sectors. WorldCall Telecom remained the volume leader with 39.357 million shares which closed lower by 3 paisas to Rs1.25 per share. Pace (Pak) Ltd. followed it with 22.589 million shares, which closed lower by 16 paisas to Rs5.23 per share.

Other significant turnover stocks included Hub Power Co. XD, PIA Holding Company, Fauji Fert Bin, Nishat ChunPow, The Organic Meat, Flying Cement, Oil & Gas Dev., and Kohinoor Spinning. In the futures market, 345 companies recorded trading, of which 102 increased, 234 decreased and 9 remained unchanged.