KARACHI: Stocks decreased 620 points on Thursday as consolidation occurred at the highest-ever level of above the 86k mark.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 share index decreased by 620.23 points or 0.72 per cent to 85,585.43 points against 86,205.66 points recorded in the last session. The highest index of the day remained at 86,520.29 points while the lowest level was recorded at 85,539.20 points.
Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed under pressure on political noise amid uncertainty over the outcome of judicial reforms and foreign outflows.”He said that government action on IPPs payments on tariff issues, weak global crude oil prices and delays over the privatisation of SOEs played a catalyst role in the bearish close.
The KSE-30 index decreased by 252.19 points or 0.93 per cent to 26,984 points against 27,236.20 points.Traded shares increased by 39 million shares to 513.288 million shares from 474.333 million shares. The trading value dropped to Rs21.612 billion from Rs26.942 billion. Market capital narrowed to Rs11.188 trillion against Rs11.269 trillion. Of the 450 companies active in the session, 173 closed in green, 208 in red and 69 remained unchanged.
Nabeel Haroon, analyst at Topline Securities, said profit-taking was observed at the bourse after the index soared to close at an all-time of high 86,205 points as of Wednesday’s close. The banking and E&P sectors largely led to profit-taking as they lost value to weigh down on the index by 348 points. The KSE-100 index declined by 0.72 per cent to close at the 85,585 level.
PRL was the volume leader with approx. 58 million shares which can be attributed to news that the Chinese investment corporation has agreed to provide $1 billion to the company for its upgradation project.
The highest increase was recorded in Hallmark Company Limited, which rose by Rs79.66 to Rs876.21 per share, followed by Rafhan Maize Products Company Limited, which increased by Rs73.02 to Rs7,332.73 per share. A significant decline was noted in Nestle Pakistan Limited, which fell by Rs100 to Rs6,800 per share; Ismail Industries Limited followed it, which closed lower by Rs86.63 to Rs1,710.95 per share.
Brokerage Arif Habib Ltd stated that the KSE-100 index saw a decline of 0.7 per cent as consolidation continued around the old highs.
HUBC (-4.3 per cent) was a significant drag after announcing that its associated company, Mega Motor Company, has entered into a master supply & manufacturing agreement with BYD Auto. The agreement allows Mega Motor to manufacture, market, distribute, and sell BYD brand vehicles in Pakistan.
While further consolidation is anticipated, market analysts suggest that declines into support at 84k should spark renewed demand, with expectations that the index will eventually break through its previous highs with momentum.
Pak Refinery XD remained the volume leader with 57.826 million shares which closed higher by Rs1.5 to Rs26.45 per share. Fauji Foods Ltd followed it with 57.329 million shares, which closed higher by 63 paisas to Rs9.34 per share.
Other significant turnover stocks included The Searle Company, Pak Int Bulk, Pace (Pak) Ltd., Cnergyico PK, WorldCall Telecom, Pervez Ahmed Co, Hub Power Co and PTCL.
In the futures market, 313 companies recorded trading, of which 107 increased, 200 decreased and 6 remained unchanged.