Stocks fell for a second day on Friday as investors locked in profits ahead of a central bank meeting that may keep interest rates unchanged, dealers said.
The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index shed 484.94 points or 0.75 percent to close at 63,813.06 points. The highest index of the day remained at 64,534.30 points while the lowest level was recorded at 63,743.40 points.The KSE-30 index also fell by 164.62 points or 0.76 percent to close at 21,534.17 points.
The market was volatile as traders awaited the outcome of the Monetary Policy Committee meeting, scheduled for Jan. 29, where the central bank is expected to announce its decision on the key policy rate, currently at record high of 22 percent.
A survey by Topline Securities showed that 68 percent of market participants expected no change in the policy rate, while 32 percent predicted a cut of 25 to 50 basis points.
"The market remained under pressure as investors remained cautious and opted to book profits ahead of the monetary policy announcement," a dealer said.
Traded shares decreased by 48 million shares to 412.823 million shares from 460.691 million shares. The trading value dropped to Rs16.185 billion from Rs25.248 billion. Market capital narrowed to Rs9.359 trillion against Rs9.395 trillion. Out of 342 companies active in the session, 99 closed in green, 221 in red and 22 remained unchanged.
Analyst Nabeel Haroon at Topline Securities said the benchmark Index opened on a positive note and gained to make an intraday high of 236 points, however, the pressure was observed in the second half of the trading session on account of profit taking by investors in banks ahead of monetary policy committee meeting due on Monday.
"FFC in the fertilizer sector declared its 4Q2023 result in which it posted EPS of Rs5.86 along with a dividend per share of Rs4.1; investors reacted negatively to the result announcement (FFC closed -2.5 percent lower than its Thursday’s closing) as the payout was lower than the industry estimate."
Major positive contributions to the index came from OGDC, HMB, INDU, ABL and LCI as they cumulatively contributed 154 points to the index. On the flip side, MARI, FFC, MEBL, HBL and BAHL lost value to weigh down on the index by -226 points.
The highest increase was recorded in Atlas Honda Limited, which rose by Rs28.52 to Rs408.77 per share, followed by Indus Motor Company Limited, which increased by Rs25.42 to Rs1,445.77 per share. A significant decline was noted in Unilever Pakistan Foods Limited, which fell by Rs400 to Rs21,500 per share, followed by Mari Petroleum Company Limited, which closed lower by Rs82.29 to Rs2,452.37 per share.
PIAC(A) remained the volume leader with 66.176 million shares which closed higher by Re1 to Rs10.34 per share. K-Electric Ltd. followed it with 47.105 million shares, which closed lower by 11 paisas to Rs5.15 per share.
Other significant turnover stocks included Oil & Gas Dev., Pak Petroleum, Hascol Petrol, WorldCall Telecom, Pak Int. Bulk, Cnergyico PK, PTCL and Fauji Foods Ltd.
A total of 311 companies recorded future shares, of which 41 increased, 261 decreased and 9 remained unchanged.