KARACHI: Bears dominated the Pakistan stock market on Tuesday as stocks witnessed a dip by 1,309 points. This was mainly due to profit-taking as investors preferred cautious positions following a decline in the key policy rate.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index fell by 1,308.72 points or 1.13 per cent to 114,860.69 points against 116,169.41 points recorded in the last session. The highest index of the day remained at 117,039.18 points while the lowest level was recorded at 113,688.55 points.
Ahsan Mehanti, an analyst at Arif Habib Corp, said that stocks closed on a bearish note as investors remained cautious amid limited policy easing by the SBP. Concerns were heightened by persistently high core inflation, hovering near 9.7 per cent, and weak large-scale manufacturing (LSM) growth, which recorded a decline of 0.64 per cent during July-October 2024.
He said that consolidation amid concerns over the tax collections shortfall, weak global crude oil prices and unresolved slippages in IMF targets under the EFF played a catalyst role in the bearish activity.
The KSE-30 index decreased by 462.78 points or 1.26 per cent to 36,196.02 points against 36,658.81 points.
Traded shares decreased by 218 million shares to 1,252.98 million shares from 1,470.661 million shares. The trading value dropped to Rs62.722 billion from Rs66.628 billion. Market capital narrowed to Rs14.583 trillion against Rs14.811 trillion. Of the 470 companies active in the session, 134 closed in green, 297 in red and 39 remained unchanged.
According to Topline Securities’ review, the market witnessed extreme volatility throughout the day as investors digested the Monetary Policy Committee’s (MPC) latest decision. The State Bank of Pakistan (SBP) announced its fifth consecutive rate cut, reducing the policy rate by 200 basis points to 13 per cent.
The benchmark index experienced significant swings, reaching an intraday high of 869 points before plunging to an intraday low of 2,480 points.
Profit-taking gained momentum in the latter half of the session, amplifying volatility and further pressuring the market downward. The downward trajectory was primarily driven by MARI, FFC, LUCK, OGDC and PPL, which collectively contributed a staggering 1,696 points to the index’s decline.
The highest increase was recorded in Unilever Pakistan Foods Limited, which rose by Rs180.02 to Rs21,000.02 per share, followed by Philip Morris (Pakistan) Limited, which increased by Rs29.78 to Rs789.88 per share. A significant decline was noted in Mari Petroleum Company Limited, which fell by Rs89.97 to Rs809.76 per share; Nestle Pakistan Limited followed it, which closed lower by Rs74.88 to Rs7,511.48 per share.
Analyst Muhammad Hasan Ather at JS Global said the KSE-100 index experienced a volatile session, briefly crossing the 117,000 mark before closing at 114,860, down 1,309 points. “The decline was primarily attributed to profit-taking after the SBP reduced interest rates by 2.0 per cent to 13 per cent,” he said. Selling pressure was witnessed across the key sectors such as E&Ps, OMCs, fertiliser, cement and autos, while banks attracted buying interest. “Despite profit-taking, the market’s long-term outlook remains positive, driven by supportive macroeconomic indicators and growing investor confidence,” he said.
WorldCall Telecom remained the volume leader with 151.921 million shares which closed lower by 4 paisas to Rs1.88 per share. Pak Elektron with 107.502 million shares followed it, which closed higher by Rs2.99 paisas to Rs38.11 per share.
Other significant turnover stocks included Cnergyico PK, BO Punjab, Pak Refinery, Sui South Gas, PIA Holding Company, Hub Power Co, K-Electric Ltd and TPL Properties. In the futures market, 306 companies recorded trading, 103 of which increased, 198 decreased, and 5 remained unchanged.