Stocks down 310 points on political uncertainty

KARACHI: After making new records, the KSE-100 index fell 310 points on Wednesday amid political uncertainty in the country.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index decreased by 310.21 points or 0.32 per cent to 95,546.46 points against 95,856.67 points recorded in the last session. The highest index of the day remained at 96,711.33 points while the lowest level was recorded at 95,311.97 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed bearish on political uncertainty and concerns over security unrest in the country.”

He said that rupee instability, foreign outflows and the pending IMF board decision over the government’s alternate tax levies and bridging the $2.5 billion gap in external financing played a catalyst role in the bearish activity.

The KSE-30 index decreased by 104.71 points or 0.35 per cent to 29,578.01 points against 29,682.72 points.

Traded shares increased by 308 million shares to 1,138.411 million shares from 830.931 million shares. The trading value rose to Rs37.481 billion from Rs30.019 billion. Market capital narrowed to Rs12.328 trillion against Rs12.332 trillion. Of the 456 companies active in the session, 156 closed in green, 251 in red and 49 remained unchanged.

Naveed Nadeem, an analyst at Topline Securities, said the KSE-100 Index closed the session at 95,546, recording a decline of 310 points or 0.32 per cent. “The market experienced notable volatility, with the index reaching a peak of 96,711 and a low of 95,312, as investors remained cautious ahead of the political protest scheduled for November 24, 2024,” he said. “Additionally, heavier-than-usual foreign corporate selling yesterday added to the pressure.”

Negative contributions from SYS, HBL, LUCK, MCB and SNGP collectively dragged the index down by 348 points. However, FFC, COLG and KAPCO partially offset these losses, adding a combined 354 points to the index.

The highest increase was recorded in Colgate-Palmolive (Pakistan) Limited, which rose by Rs101.90 to Rs1,480.88 per share, followed by Nestle Pakistan Limited, which increased by Rs91.17 to Rs6,691.17 per share. A significant decline was noted in Pakistan Services Limited, which fell by Rs44.72 to Rs802.67 per share; Service Industries Limited followed it, which closed lower by Rs39.48 to Rs1,179.99 per share.

Brokerage Arif Habib Limited stated that the KSE-100 index slipped 0.3 per cent day-on-day, closing lower amid resistance at the 96k level.

On the political front, a Pakistani court granted bail to former Prime Minister Imran Khan in a case where he is accused of concealing income. The Islamabad High Court ordered his release from jail, though it remains unclear if Khan, who has been incarcerated for over a year and faces charges in more than 100 cases, will be freed immediately.

In the banking sector, institutions are introducing new fees on large accounts to deter deposit inflows. This move aims to improve the advance-to-deposit ratio (ADR) and avoid a punitive tax imposed by the government.

Support for the KSE-100 remains firm at the 94k level, offering a potential base for recovery in upcoming sessions.

K-Electric Ltd remained the volume leader with 174.389 million shares which closed lower by 2 paisas to Rs5.22 per share. Hascol Petrol followed it with 63,973 million shares, which closed higher by Rs1.02 to Rs11.26 per share.

Other significant turnover stocks included Kohinoor Spinning, Aisha Steel Mill, Waves Home App, Lotte Chemical, Telecard Limited, Cnergyico PK, WorldCall Telecom and PTCL.

In the futures market, 308 companies recorded trading, 90 of which increased, 217 decreased, and one remained unchanged.