Stocks closed slightly lower Thursday in a mixed session amid institutional profit-taking in the overbought stocks after recent record rallies, traders said.
The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index fell by 80.49 points or 0.11 percent to close at 71,971.40 points. The highest index of the day remained at 72,593.25 points while the lowest level was recorded at 71,700.54 points. The KSE-30 index decreased by 58.77 points or 0.25 percent to 23,749.05 points.
“Stocks closed under pressure on institutional profit-taking in selected over-bought scrips and adjustments in the earning season,” said analyst Ahsan Mehanti at Arif Habib Corp.
"Weak global crude oil prices, weak rupee, government structural reforms for the IMF new program likely to withdraw subsidies in energy, fertilizer and gas sectors and expectations over the status quo in the SBP policy announcement next week played a catalytic role in the negative close."
Traded shares increased by 199 million shares to 798.527 million shares from 599.401 million shares. The trading value rose to Rs27.542 billion from Rs24.459 billion. Market capital narrowed to Rs9.952 trillion against Rs9.969 trillion. Of 389 companies active in the session, 173 closed in green, 191 in red and 25 remained unchanged.
Analyst Muhammad Rizwan at Chase Securities said following its peak at 72,000, the PSX initially maintained its positive momentum from the prior day, surging by 541 points. "However, profit-taking in the cement and automobile sectors pared back some of these gains, resulting in a decline of 351 points," Rizwan said. "Nonetheless, a subsequent rebound in the banking and oil sectors helped mitigate the losses, resulting in the market closing just 80 points lower."
Sectors such as oil & gas exploration, auto, banking, cement, and fertilizer contributed to the index's decline, with companies MTL, POL, LUCK, FABL, and ENGRO collectively losing 206 points. Conversely, UBL, OGDC, and EFERT made positive contributions, adding a total of 167 points.
The highest increase was recorded in Hallmark Company Limited shares, which rose by Rs74.31 to Rs1,072.52 per share, followed by Mari Petroleum Company Limited, which increased by Rs28.33 to Rs2,829.10 per share. A significant decline was noted in Unilever Pakistan Foods Limited, which fell by Rs372.99 to Rs20,255 per share, followed by Sapphire Textile Mills Limited, which closed lower by Rs79.34 to Rs1,186.03 per share.
Brokerage Arif Habib Ltd said that the PSX witnessed a mixed trading session, marked by a high of 72,600 and a low of 71,700, ultimately closing below the 72,000 mark.
The surge in KEL was attributed to NEPRA's approval of their investment plan and loss assessment for the transmission and distribution business for the next seven years, starting from FY24.
However, MTL (-5.35 percent) reported 9MFY24 EPS at 40.98, marking a substantial 269 percent year-on-year increase but falling below market expectations following a strong run in the last couple of weeks, particularly towards December highs.
Similarly, ENGRO (-0.62 percent) announced 1QFY EPS of 10.66, reflecting a 30 percent year-on-year growth and below market expectations.Market analysts emphasize the importance of holding above the 71,500 level to sustain short-term momentum in the market, as investors remain cautious amidst mixed corporate earnings and global economic uncertainties.
K-Electric Ltd. remained the volume leader with 119.648 million shares which closed higher by 50 paisas to Rs4.64 per share. WorldCall Telecom followed it with 79.958 million shares, which closed higher by 5 paisas to Rs1.39 per share.
Other significant turnover stocks included Unity Foods Ltd, Pak Int. Bulk, Fauji Foods Ltd, Air Link Commun, Fauji Fert Bin, Telecard Limited, Hascol Petrol and Cnergyico PK.In Future Market, 317 companies recorded trading, of which 202 increased, 106 decreased and 9 remained unchanged.