KARACHI: Stocks plunged for the second consecutive session on Tuesday. The benchmark KSE-100 index decreased by 1,490 points, triggered by a cautious discount rate cut by the Monetary Policy Committee of the State Bank of Pakistan (SBP) and weak financial earnings in the oil sector.
The Pakistan Stock Exchange’s (PSX) benchmark plunged by 1,489.96 points, or 1.31 per cent, to 112,030.36 points, down from the 113,520.32 points recorded in the last session. The highest index of the day remained at 113,644.72 points, while the lowest level was recorded at 111,434.95 points.
Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks closed bearish after the SBP’s cautious rate cut decision amid high core inflation and evolving risks.” He said that dismal financial results in the oil sector, gas reforms impacting industrials, rupee instability and uncertainty over the outcome of government-PTI talks played a catalyst role in the bearish activity.
The KSE-30 index decreased by 515.39 points or 1.45 per cent to 35,135.86 points against 35,651.25 points. Traded shares increased by 23 million shares to 517.804 million shares from 494.003 million shares. The trading value rose to Rs29.209 billion from Rs25.940 billion. Market capital narrowed to Rs13.77 trillion against Rs13.928 trillion. Of the 438 companies active in the session, 95 closed in green, 280 in red and 63 remained unchanged.
Analyst Naveed Nadeem at Topline Securities said the market saw a decline in Tuesday’s trading session, with the index dropping to an intraday low of 111,435 points before closing at 112,030, reflecting a loss of 1,490 points or 1.31 per cent. “The negative sentiment was driven by the January rollover and weaker-than-expected results, putting additional pressure on the market,” he said.
Key stocks contributing to the decline included FFC, ENGROH, SYS, MARI and OGDC, which caused a drop of 826 points in the index.
The highest increase was recorded in Rafhan Maize Products Company Limited, which rose by Rs99.99 to Rs9,299.99 per share, followed by Lucky Core Industries Limited, which increased by Rs29.85 to Rs1,175.22 per share. A significant decline was noted in Hoechst Pakistan Limited, which fell by Rs66.70 to Rs3,000 per share; Pakistan Engineering Company Limited followed it, which closed lower by Rs53.44 to Rs707.83 per share.
Muhammad Hasan Ather, an analyst at JS Global, said that the market declined amid political uncertainty from halted negotiations between the government and the opposition. “Despite this, a positive future outlook can be drawn from the [SBP’s] recent rate cut to 12 per cent, which might foster improved market conditions and investor sentiment,” he said.
WorldCall Telecom remained the volume leader with 67.917 million shares, which closed lower by 4 paisas to Rs1.69 per share. Sui South Gas, with 29.454 million shares, followed it, which closed lower by Rs1.39 to Rs38.14 per share.
Other significant turnover stocks included Cnergyico PK, Fauji Foods Ltd, Citi Pharma Ltd, Fauji Cement, K-Electric Ltd, Lotte Chemical, Pak Elektron and Pak Refinery.
In the futures market, 301 companies recorded trading, 52 of which increased, 245 decreased and 4 remained unchanged.
