Stocks down 202 points amid economic uncertainty

KARACHI: The Pakistan Stock Exchange witnessed a volatile session on Tuesday. The benchmark KSE-100 index declined by 202 points amid political and economic uncertainty.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index decreased by 202.44 points or 0.17 per cent to 116,052.68 points against 116,255.13 points recorded in the last session. The highest index of the day remained at 116,843.41 points, while the lowest level was recorded at 113,677.50 points.

Ahsan Mehanti, an analyst at Arif Habib Corp, said, “mixed activity was witnessed amid political noise and economic uncertainty.” He said that government actions on industrials to qualify for the IMF $1bn tranche in March 2025, a weak rupee, and geopolitical tensions played a catalyst role in the bearish close.

The KSE-30 index decreased by 25.76 points or 0.07 per cent to 36,577.6 points against 36,603.36 points. Traded shares decreased by 27 million shares to 792.77 million shares from 819.805 million shares. The trading value rose to Rs39.694 billion from Rs38.326 billion. Market capital narrowed to Rs14.52 trillion against Rs14.562 trillion. Of the 453 companies active in the session, 133 closed in green, 275 in red and 45 remained unchanged.

Analyst Naveed Nadeem at Topline Securities said the market saw significant volatility, with the index reaching a high of 116,843 and a low of 113,677. Despite the initial drop, the market rebounded.

A statement from the prime minister, indicating that the government is considering reducing electricity rates, played a role in the recovery of share prices. The decline in the index was primarily driven by EFERT, FFC, HBL, ATRL and PSO, which together contributed to a loss of 433 points. ENGROH, OGDC, and TRG helped offset the losses, adding 436 points to the index.

The highest increase was recorded in JDW Sugar Mills Limited, which rose by Rs74.79 to Rs822.68 per share, followed by Lucky Core Industries Limited, which increased by Rs51.67 to Rs1,148.16 per share. A significant decline was noted in Hallmark Company Limited, which fell by Rs89.38 to Rs857.84 per share; Nestle Pakistan Limited followed it, which closed lower by Rs75.39 to Rs7,344.08 per share.

Brokerage Arif Habib Ltd said that the Pakistan Stock Exchange (PSX) experienced sharp early declines, with the KSE-100 Index plunging 2.4 per cent to 113,000 points before recovering to close just 0.17 per cent lower at 115,500 points, holding above key support levels.

In a positive development, Prime Minister Shehbaz Sharif announced that the United Arab Emirates (UAE) has rolled over $2 billion in debt repayments initially due in January, providing much-needed fiscal relief.

With the week’s low now appearing to be established at 113,700 points, analysts expect the market to resume its uptrend in the coming sessions, targeting the 119,000-point level. WorldCall Telecom remained the volume leader with 80.583 million shares, which closed higher by 6 paisas to Rs1.71 per share. Cnergyico PK, with 76.6 million shares, followed it, which closed lower by 6 paisa to Rs7.35 per share.

Other significant turnover stocks included K-Electric Ltd., Fauji Foods Ltd., Fauji Foods Ltd, Sui South Gas, Pak Stock Exchange, Pak Refinery, BO Punjab, Pak Elektron and Maple Leaf. In the futures market, 301 companies recorded trading, 112 of which increased, 184 decreased, and 5 remained unchanged.