Stocks end lower as caution prevails ahead of long weekend

Stocks closed lower on Thursday, ending the week and the month on a negative note, as investors remained cautious amid economic uncertainty and political noise ahead of the long weekend.

The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index shed 132.45 points or 0.29 percent to close at 46,232.59 points. The highest index of the day remained at 46,469.60 points while the lowest level was recorded at 46,177.50 points.

“Stocks closed lower on investor concerns for economic uncertainty and political noise,” Ahsan Mehanti, an analyst at Arif Habib Corp., said. He cited the rising gas circular debt, higher industrial power tariff and expected inflation increase in September as factors that dampened the market mood.

The KSE-30 index also fell by 183.19 points or 1.13 percent to close at 15,989.21 points. Traded shares remained flat at 177 million shares.

The trading value slightly decreased to Rs6.932 billion from Rs6.928 billion. Market capital narrowed to Rs6.885 trillion against Rs6.925 trillion. Out of 327 companies active in the session, 122 closed in green, 183 in red and 22 remained unchanged. Analyst Nabeel Haroon at Topline Securities said a dull session was observed at the exchange as the index traded sideways with low volume, however, some selling was observed in the last hours of trading as investors preferred to reduce their holding ahead of the long weekend.

The top contribution to the index came from HUBC, LUCK, HINOON, NATF and COLG, as they cumulatively added 53 points to the index. On the flip side, POL, SYS, OGDC, TRG and MEBL lost value to weigh down on the index by -338 points.

The highest increase was recorded in J.D.W. Sugar, which rose by Rs24 to Rs374 per share, followed by Highnoon (Lab), which increased by Rs12.66 to Rs379.91 per share. A significant decline was noted in Nestle Pakistan, which fell by Rs42.79 to Rs7,100 per share, followed by Ismail Ind, which decreased by Rs40.69 to Rs650 per share.

Brokerage Arif Habib Ltd said the last trading session of the week and the month ended without much upward momentum, resulting in a slight weekly decline of -0.4 percent but still maintaining the crucial 46,000 points level.

"Despite the lacklustre session, the market's ability to hold above the 46k level maintains a positive outlook, with anticipation of potential gains toward the 46.9k mark," the brokerage said.

Engro Powergen Ltd., a subsidiary of Engro Corp., announced that it is planning to divest its thermal energy assets, signaling a potential shift in its strategic focus. Oil & Gas Dev. remained the volume leader with 10.868 million shares which closed lower by Rs1.35 to Rs96.46 per share. It was followed by WorldCall Telecom with 9.629 million shares, which closed flat at Rs1.14 per share.

Other significant turnover stocks included Agritech Limited, Fauji Foods Ltd, P.I.A.C.(A), Pak Petroleum, TPL Properties, Image Pakistan, Cnergyico PK and Citi Pharma Ltd. Shares’ turnover in the future contracts increased to 249.066 million shares from 228.432 million shares.