Stocks slip on political and economic headwinds ahead of elections

Stock fell for a second day on Tuesday as investors weighed the political and economic risks ahead of the general elections scheduled for next month, dealers said.

The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index shed 66.45 points or 0.10 percent to close at 64,170.58 points after fluctuating between gains and losses throughout the day. The KSE-30 index also closed lower by 16.92 points or 0.08 percent to 21,455.72 points.

"Stocks closed lower on pre-poll uncertainty after envoys stress on inclusive elections," said analyst Ahsan Mehanti at Arif Habib Corp. Mehanti said weak exports data, falling oil prices and geo-political tensions also weighed on the market sentiment.

Traded shares decreased by 36 million shares to 448.990 million shares from 484.012 million shares. The trading value decreased to Rs12.281 billion from Rs12.744 billion. Market capital expanded to Rs9.323 trillion against Rs9.319 trillion. Out of 352 companies active in the session, 141 closed in green, 187 in red and 24 remained unchanged.

Analyst Naveed Nadeem at Topline Securities said equities wrapped up the day at 64,170 points, reflecting a marginal decline of 66 points or 0.10 percent. "Throughout today's trading session, the index displayed volatility, swinging within a range of 908 points. It reached an intraday high of 64,786 and a low of 63,878."

Negative movements were observed in SYS, PSEL, MEBL, OGDC, and HBL, collectively causing a loss of 92 points. Conversely, EFERT, ENGRO, and BAHL contributed to a combined gain of 96 points.

Analyst Muhammad Shuja Qureshi at JS Research said the market remained volatile during the day resulting in lower participation, despite a positive start. “Going forward, investors are advised to remain cautious and wait for dips to accumulate value stocks.”

The highest increase was recorded in Sapphire Fibres Limited, which rose by Rs119 to Rs1,784 per share, followed by Pak Suzuki Motor Company Limited, which increased by Rs54.25 to Rs777.56 per share. A significant decline was noted in Nestle Pakistan Limited, which fell by Rs50 to Rs8,200 per share, followed by Bata Pakistan Limited, which closed lower by Rs40.98 to Rs1,678.01 per share.

Brokerage Arif Habib Ltd said the current stance is one of watchfulness, with support levels identified at 64,000 points and subsequently 63,000 points, while resistance persists at 65,500 points.

"Decisive moves beyond 65,500 points are expected to target 67,000 in the near term. This concise analysis provides a snapshot of the current market situation and outlines key levels and potential scenarios for future movements."

K-Electric Ltd. remained the volume leader with 113.954 million shares which closed lower by 15 paisas to Rs5.75 per share. Hascol Petrol followed it with 36.113 million shares, which closed higher by 45 paisas to Rs8 per share. Other significant turnover stocks included P.I.A.C. (A), Pak Elektron, WorldCall Telecom, B.O. Punjab, Cnergyico PK, Pak Refinery, Kohinoor Spining and Fauji Foods Ltd. A total of 312 companies recorded future shares, of which 106 increased, 196 decreased and 10 remained unchanged.