Stocks plunge 1.4 percent as investors lock in gains; energy sector suffers

Stocks fell 1.4 percent on Monday as investors booked profits after a strong rally in the previous week, with most sectors ending in negative territory, dealers said.

The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index shed 925.35 points or 1.40 percent to close at 65,204.68 points. The highest index of the day remained at 66,586.62 points while the lowest level was recorded at 65,064.94 points. The KSE-30 index also decreased by 333.09 points or 1.51 percent to close at 21,710.76 points.

Analyst Ahsan Mehanti at Arif Habib Corp, said pressure witnessed at the market on institutional profit-taking in overbought scrips amid a slump in global crude prices and concerns for the fate of structural reforms post-general elections.

"Dismal data on LSM growth falling by 4.1 percent year-on-year in October and the decision for further raise in industrial gas tariff to ease off circular debt crises played a catalytic role in the bearish close."

Traded shares increased by 49 million shares to 1.890 billion shares from 1.741 billion shares. The trading value decreased to Rs24.595 billion from Rs29.976 billion. Market capital rose to Rs9.455 trillion against Rs9.543 trillion. Out of 381 companies active in the session, 107 closed in green, 264 in red and 10 remained unchanged.

Analyst Naveed Nadeem at Topline Securities said the profit-taking trend was evident in the market for early trade, resulting in a decline of more than 925 points and causing the index to close at 65,204. "Throughout the trading day, the index experienced fluctuations within a range of 1,521 points, reaching an intraday high of 66,586 and a low of 65,064 points."

“The trading session witnessed significant activity, with a total of 1.8 billion shares being exchanged on the stock exchange, amounting to a cumulative value of Rs24.5 billion. WTL stood out on the volumes chart, leading with the trading of over 444 million shares.”

Negative contributions during trading hours came from stocks in the E&P, fertilizer, and banks sectors, where companies like PPL, MEBL, ENGRO, OGDC, and FFC collectively incurred a loss of 281 points. On the positive side, stocks such as KEL, PTC, and PSEL contributed to a combined gain of 80 points.

The highest increase was recorded in Hoechst Pakistan Limited, which rose by Rs49 to Rs1,249 per share, followed by Mehmood Textile Mills Limited, which increased by Rs25 to Rs525 per share. A significant decline was noted in Rafhan Maize Products Company Limited, which fell by Rs250 to Rs9,750 per share, followed by Sapphire Fibres Limited, which closed lower by Rs142.50 to Rs1,757.50 per share.

Brokerage Arif Habib Ltd said the benchmark index remained below the resistance level at 66,600, hitting an intraday high of 66,586 points before declining sharply for the rest of the session.

The biggest downside contributions came from PPL (-2.53 percent), MEBL (-2.69 percent), and ENGRO (-2.12 percent).

WorldCall Telecom remained the volume leader with 444.141 million shares which closed higher by 8 paisas to Rs1.90 per share. K-Electric Ltd. followed it with 392.747 million shares, which closed higher by 59 paisas to Rs5.83 per share.

Other significant turnover stocks included Cnergyico PK, Hascol Petrol, B.O. Punjab, P.T.C.L., Pak Elektron, Pak Int. Bulk, Fauji Foods Ltd and Kohinoor Spining.

A total of 315 companies recorded future shares, of which 62 increased, 247 decreased and 6 remained unchanged.