KARACHI: The Pakistan Stock Exchange (PSX) faced continued pressure as investors expressed concerns over the Tax Laws Amendment Bill 2024, which prohibits non-filers from trading in the market. Consequently, the benchmark KSE-100 index fell by 1,599 points.
The KSE-100 plunged 1,598.82 points, or 1.39 per cent, to 113,443.43 points, down from the 115,042.25 points recorded in the last session. The highest index of the day remained at 115,256.16 points, while the lowest level was recorded at 113,359.38 points.
Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks closed bearish amid worries over Tax Laws Amendment Bill 2024 prohibiting non-filers from making stock purchases beyond certain limits.”
He said that rupee instability, uncertainty over government-PTI negotiations, and weak global crude oil prices played a catalyst role in the bearish activity. The KSE-30 index decreased by 564.27 points or 1.56 per cent to 35,635.31 points against 36,199.59 points.
Traded shares decreased by 24 million shares to 743.632 million shares from 767.270 million shares. The trading value rose to Rs35.245 billion from Rs31.825 billion. Market capital narrowed to Rs14.001 trillion against Rs14.215 trillion. Of the 454 companies active in the session, 93 closed in green, 307 in red, and 54 remained unchanged.
Analyst Maaz Mulla at Topline Securities said the bears dominated the trading session as the KSE-100 index experienced a sharp decline.
“The downtrend was primarily attributed to consistent selling pressure from local banks, as reflected in NCCPL data,” he said. “This prolonged selling dampened market sentiment, leading to a bearish tone. Investors maintained a cautious stance, which further intensified the negative momentum.”
Key stocks driving the market’s decline included Mari, ENGROH, OGDC, PPL and HUBC, collectively contributing to a loss of 936 points.
The highest increase was recorded in Unilever Pakistan Foods Limited, which rose by Rs349.99 to Rs21,900 per share, followed by Hoechst Pakistan Limited, which increased by Rs183.27 to Rs3,291.79 per share. A significant decline was noted in Ismail Industries Limited, which fell by Rs107.96 to Rs1,857.50 per share; Mari Energies Limited followed it, which closed lower by Rs64.55 to Rs594.98 per share.
Analyst Muhammad Hasan Ather at JS Global said the decline was primarily driven by apprehensions surrounding the Tax Laws Amendment Bill 2024, which restricts non-filers from making stock purchases, along with rupee instability, and weaker global crude oil prices.
Looking ahead, he said, the market may continue to exhibit cautious sentiment in the near term. “However, potential interest rate cuts and political stability could offer some positive momentum,” he said. “Investors are advised to keep a close watch on regulatory developments and global economic trends.”
WorldCall Telecom remained the volume leader with 100.218 million shares, which closed lower by 8 paisas to Rs1.7 per share. Cnergyico PK, with 96.976 million shares, followed it, which closed higher by 7 paisas to Rs7.36 per share.
Other significant turnover stocks included Fauji Cement, Bank Makramah, Lotte Chemical, Citi Pharma Ltd, Fauji Foods Ltd, DGK Cement, Power Cement and Waves Home App. In the futures market, 300 companies recorded trading, 57 of which increased, 242 decreased and one remained unchanged.