KARACHI: The Pakistan Stock Exchange (PSX) remained under pressure and started the week negatively amid thin trading volumes. The benchmark KSE-100 index plunged by 1,265 points amid weak economic outlook near earnings season close.
The KSE-100 Index plunged by 1,264.78 points, or 1.12 per cent, to 111,986.89 points, down from the 113,251.67 points recorded in the last session. The highest index of the day remained at 113,591.83 points, while the lowest level was recorded at 111,829.15 points.
Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks fell sharply lower near the earnings season close on weak economic outlook.” He said that foreign outflows, weak rupee, lower global crude oil prices and uncertainty over the outcome of Pakistan-IMF talks this week played a catalyst role in the bearish close.
The KSE-30 index decreased by 517.96 points or 1.47 per cent to 34,675.98 points against 35,193.94 points. Traded shares dropped by 264 million shares to 208.881 million shares against 472.078 million shares. The trading value decreased to Rs11.881 billion from Rs22.778 billion. Market capital narrowed to Rs13.84 trillion against Rs13.98 trillion. Of the 438 companies active in the session, 86 closed in green, 287 in red and 65 remained unchanged.
Analyst Naveed Nadeem at Topline Securities said the market experienced a decline in the trading session, with the index reaching an intraday low of 111,829 points before closing at 111,987, reflecting a loss of 1,264 points or 1.12 per cent.
The negative sentiment was driven by the lack of a positive trigger, in addition to ENGROH earnings falling short of expectations, which contributed 424 points to the decline. The shorter trading hours also put pressure on the market.
Key stocks contributing to the downturn included ENGROH, UBL, MCB, MTL and PPL, which together accounted for a drop of 731 points in the index. The highest increase was recorded in Hoechst Pakistan Limited, which rose by Rs174.39 to Rs3,182.81 per share, followed by Packages Limited, which increased by Rs20.59 to Rs567.59 per share. A significant decline was noted in Shifa International Hospitals Limited, which fell by Rs29.08 to Rs431.01 per share; Bata Pakistan Limited followed it, which closed lower by Rs27.62 to Rs1,722.38 per share.
Muhammad Hasan Ather, an analyst at JS Global, said that investors exercised caution ahead of the IMF review and Ramadan, contributing to lower participation. “Uncertainty over fiscal targets, monetary policy, and upcoming IMF negotiations weighed on sentiment,” he said. “Looking ahead, the market’s direction will depend on the IMF review outcome and the State Bank of Pakistan’s monetary policy stance.”
National Bank XD remained the volume leader with 23.799 million shares, which closed higher by 91 paisas to Rs79.10 per share. WorldCall Telecom, with 17.593 million shares, followed it, which closed lower flat at Rs1.41 per share.
Other significant turnover stocks included Pak Int Bulk, BO Punjab, Citi Pharma Ltd, Cnergyico PK, Maple Leaf, At-Tahur Ltd., Fauji Cement and Power Cement. In the futures market, 332 companies recorded trading, 68 of which increased, 257 decreased and 7 remained unchanged.
