Profit-taking halts stocks’ record run

Stocks ended lower on Monday, snapping a seven-day winning streak that saw the benchmark index hit record highs, as investors booked profits in blue-chip sectors, dealers said.

The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index shed 211.31 points or 0.32 percent to close at 66,012.33 points. The highest index of the day remained at 66,564.04 points while the lowest level was recorded at 65,129 points. The KSE-30 index also fell by 75.08 points or 0.34 percent to close at 22,048.06 points.

Traded shares decreased by 114 million shares to 1.215 billion shares from 1.329 million shares. The trading value dropped to Rs33.423 billion from Rs33.377 billion. Market capital dropped to Rs9.462 trillion against Rs9.498 trillion. Out of 386 companies active in the session, 159 closed in green, 224 in red and 3 remained unchanged.

Analyst Ahsan Mehanti, an analyst at Arif Habib Corp, said institutional investors booked profits after reports of 10 percent year-on-year fall in remittances for July-Nov’23 to $11.045 billion and the govt decision to further raise in industrial power tariff to resolve Rs4.5 trillion energy sector circular debt crises.”

"Reports of dismal data on cement sales further falling in the winter season and concerns for unsustainable government debt and painful domestic debt restructuring played a catalytic role in the bearish close."

Analyst Ali Najib at Topline Securities said bulls felt blue after having a massive show of strength for the last consecutive six days as the benchmark index closed the trading hours on a negative note.

"The day witnessed strong selling headwinds just after the opening bell rang as investors opted to do profit-taking across the board which pushed the index below the 66,000 mark and the benchmark index had an intraday low at 65,129 (-1,095 points; down -1.65 percent)."

Power, OMC and the banking sector received considerable selling pressure where HUBC, HBL, MEBL, PSO and UBL negatively contributed 396 points to the index. On the flip side, FFC, MARI & EFERT saw some buying interest as they added 245 points, cumulatively.

KEL was today`s volume leader where 164.6 million shares of the power utility changed hands, during the trading session. Overall volumes and value stood at 1.2 billion shares & Rs33.4 billion, respectively.

The highest increase was recorded in Mari Petroleum Company Limited, which rose by Rs101.41 to Rs2,168.84 per share, followed by Sapphire Fibres Limited, which increased by Rs98.27 to Rs1.603.27 per share. A significant decline was noted in Nestle Pakistan Limited, which fell by Rs350 to Rs8,550 per share, followed by Rafhan Maize Products Company Limited.

Brokerage Arif Habib Ltd said the week commenced with selling pressure, resulting in a two percent intra-day decline before a marginal closing downturn.

The upcoming State Bank of Pakistan (SBP) monetary policy announcement is anticipated tomorrow (Tuesday), with AHL predicting that interest rates will be maintained at 22 percent. "The near-term support is identified at 64,000 with attention shifting to 70,000 if this level holds."

In the technology sector, a strong bidding environment is expected, positioning tech names to lead upside movements throughout the week.

K-Electric Ltd. remained the volume leader with 164.643 million shares which closed higher by 6 paisas to Rs4.49 per share. It was followed by WorldCall Telecom with 93.320 million shares, which closed higher by 4 paisas to Rs1.71 per share.

Other significant turnover stocks included Kohinoor Spining, P.T.C.L., Askari Bank, Hascol Petrol, Pak Refinery, Telecard Limited, Fauji Foods Ltd and Silk Bank Ltd.

A total of 315 companies recorded future shares, of which 111 increased, 201 decreased and 3 remained unchanged.