Stocks sink as election results trickle into hung parliament

KARACHI: Pakistan stocks plunged by 1,200 points Friday as political uncertainty prevailed amid delay in the general election results and with no single party having the majority, traders said.

The Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index closed lower by 1,200.12 points or 1.87 percent to 62,943.75 points against 64,143.87 points recorded in the last session. The highest index of the day remained at 63,305.71 points while the lowest level was recorded at 61,781.76 points.

Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks fell across the board on political uncertainty amid delay in general election results.” Moody’s rating concerns over political instability, policy uncertainty crucial for the country facing very challenging macroeconomic conditions with fragile balance of payment and high inflation, and investor concerns for surging industrial power tariff impacted the sentiments, he said.

The KSE-30 index also decreased by 423.35 points or 1.95 percent to 21,288.25 points against 21,711.61 points.

Traded shares decreased by 69 million shares to 258.073 million shares from327.591 million shares. The trading value dropped to Rs12.591 billion from Rs14.308 billion. Market capital narrowed to Rs9.198 trillion against Rs9.361 trillion. Out of 319 companies active in the session, 55 closed in green, 241 in red and 23 remained unchanged.

Analyst Nabeel Haroon at Topline Securities said, “Market reacted negatively to the delayed result of the general election where initial result announcement showed no clear majority of a single party, KSE 100 Index declined to make an intraday low of -2,362 points (down by -3.68 percent).”

However, he said, some recovery was observed as the day progressed and results started coming where the number of seats won by PMLN increased in number and the probability of coalition government led by the PMLN augmented.

The highest increase was recorded in Philip Morris (Pakistan) Limited, which rose by Rs30 to Rs700 per share, followed by Packages Limited, which increased by Rs12.73 to Rs522.85 per share. A significant decline was noted in Unilever Pakistan Foods Limited, which fell by Rs64.33 to Rs22,300 per share, followed by Mari Petroleum Company Limited, which closed lower by Rs56.74 to Rs2,274.11 per share.

Brokerage Arif Habib Ltd stated that the conclusion of a shortened yet eventful week marked the KSE-100 remaining flat week-on-week. Elections dominated the news cycle, shaping expectations for the market’s trajectory in the coming week.

OGDC (-3.71 percent), PPL (-3.7 percent), and ENGRO (-2.37 percent) emerged as the primary drags on the index.

Despite a gap down and a -1.95 percent day-over-day close following the delay in election results, the price action has maintained its structure, staying within converging trendlines. Anticipation is high for next week, which is expected to be decisive, as the price may finally break its current structure, setting the stage for directional plays, stated the brokerage.

Mohammed Waqar Iqbal, an analyst at JS Research, said the trading session began with a 2,000-point drop due to a delay in the announcement of election results. “Going forward, investors are recommended to adopt a buy-on-dips strategy in banking and E&P sectors,” he advised.

K-Electric Ltd remained the volume leader with 20.541 million shares which closed lower by 21 paisas to Rs4.65 per share. Oil & Gas Dev. followed it with 18.933 million shares, which closed lower by Rs5.59 to Rs145.08 per share.

Other significant turnover stocks included Pak Petroleum, Pak Refinery, WorldCall Telecom, PIAC (A), Hascol Petrol, Fauji Cement, Pak Elektron and Pak Int. Bulk. In Future’s Market, 328 companies recorded trading, of which 15 increased, 312 decreased and one remained unchanged.