KSE-100 starts new trading week with loss of 1,332 points

KARACHI: The Pakistan Stock Exchange started the week on a negative note where the benchmark KSE-100 index declined by 1,332 points amid institutional profit-taking, as investors showed concerns in the gas and cement sectors.

The Pakistan Stock Exchange’s (PSX) benchmark KSE 100 Index decreased by 1,331.86 points or 1.13 per cent to 116,255.13 points against 117,586.98 points recorded in the last session. The highest index of the day remained at 118,735.10 points, while the lowest level was recorded at 115,941.95 points.

Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks closed under pressure amid political uncertainty and IMF strict levies on industrial captive power plants led institutional profit taking.”

He said that subdued economic growth at 0.92 per cent for July-September 2024 and concerns about the outcome of critical economic reforms to qualify for a $1 billion tranche in March 2025 played a catalyst role in the bearish activity.

The KSE-30 index decreased by 461.69 points or 1.25 per cent to 36,603.36 points against 37,065.05 points. Traded shares decreased by 116 million shares to 819.805 million shares from 935.783 million shares. The trading value dropped to Rs38.326 billion from Rs39.62 billion. Market capital narrowed to Rs14.562 trillion against Rs14.633 trillion. Of the 458 companies active in the session, 113 closed in green, 291 in red and 54 remained unchanged.

Analyst Maaz Mulla at Topline Securities said the local bourse experienced a profit-booking day as investors opted to cash in on recent gains.

The day’s bearish sentiment was largely influenced by concerns in the gas sector, following reports of a significant rise in circular debt. This concerning development dampened investor confidence, leading to widespread profit-taking across the board, he said.

The cement sector extended its downward trend as investors chose to book profits, spurred by reports of disagreements among cement players. Some are advocating for an increased market share while others are favouring adjustments in geographic sales to secure higher retention prices.

Key contributors to the upward trajectory included Engro, HMB, AICL, MCB and MUREB, collectively adding 395 points. On the other hand, substantial declines in OGDC, PSO, FFC, EFERT, and SNGP weighed heavily on the market, accounting for a combined loss of 698 points.

The highest increase was recorded in Murree Brewery Company Limited, which rose by Rs63.08 to Rs782.55 per share, followed by JDW Sugar Mills Limited, which increased by Rs44.25 to Rs747.89 per share. A significant decline was noted in Rafhan Maize Products Company Limited, which fell by Rs138.96 to Rs8,855 per share; Hallmark Company Limited followed it, which closed lower by Rs103.85 to Rs947.22 per share.

Brokerage Arif Habib Ltd said that the PSX witnessed a negative start to the new trading week.

In a key development, the World Bank announced plans to approve a $20 billion loan package for Pakistan under a new 10-year strategy focused on addressing structural challenges in health, education and climate resilience. The initiative aims to safeguard long-term development projects from political instability, ensuring continuity despite anticipated government changes between 2025 and 2035.

With Monday’s pullback, the index has retreated into its recent range. However, technical support at the 115,500-point level is expected to provide a base for a potential rebound in the coming sessions.

Cnergyico PK remained the volume leader with 83.169 million shares, which closed lower by 14 paisas to Rs7.41 per share. Fauji Foods Ltd, with 47.302 million shares, followed it, which closed lower by 51 paisa to Rs18.41 per share.

Other significant turnover stocks included WorldCall Telecom, Fast Cables Ltd., K-Electric Ltd., Pak Refinery, Pak Elektron, Symmetry Group Ltd, Fauji Cement and Pace (Pak) Ltd. In the futures market, 301 companies recorded trading, 49 of which increased, 250 decreased, and 2 remained unchanged.