Stocks fail to hold 66,000 level, end lower on profit-taking

Stocks ended lower on Thursday, reversing from an early peak above 66,000 points as profit-taking ensued following recent advances, dealers said.

The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index shed 314.39 points or 0.48 percent to close at 65,417.40 points. The benchmark KSE-100 Index of the Pakistan Stock Exchange (PSX) concluded the session at 65,417.40, down by 314.39 points or 0.48%, from the previous close of 65,731.79.

The index touched a high of 66,196.24 points before retreating to a low of 65,326.01 points during the day. The KSE-30 index fell by 197.12 points or 0.91 percent to 21,534.56 points. “Stocks closed bearish on the weak economic outlook,” said analyst Ahsan Mehanti at Arif Habib Corp.

A spike in government treasury bond yields, a 17.1 percent year-on-year decline in foreign direct investment to $820.6 million for the July-February period, and external financing challenges were key factors behind the day’s losses, he added.

Traded shares increased by 48 million shares to 389.654 million shares from 341.843 million shares. The trading value dropped to Rs11.307 billion from Rs11.844 billion. Market capital narrowed to Rs9.226 trillion against Rs9.288 trillion. Of 357 companies active in the session, 115 closed in green, 221 in red and 21 remained unchanged.

Several sectors, including exploration & production (E&P), automotive, banking, and technology, contributed negatively to the index performance, with companies such as MARI, PPL, MTL, PSO, TRG, and HBL collectively shedding 266 points.

Analyst Ali Najib at Topline Securities said equities initiated the day’s affairs on a positive note as the the benchmark index made an intraday high at 66,196 points level in the early trade.

"However, the benchmark index couldn’t withstand 66,000 due to profit-taking at the day’s high. Resultantly, the index went into negative territory and called the day at 65,417 points levels."

An increase in T-bills cut-off yields in yesterday’s auction could likely be the reason for Thursday’s market action as it shacked investors’ confidence a bit regarding the commencement of monetary easing.

On the global landscape, the US central bank’s Federal Open Market Committee kept its benchmark rate in a range of 5.25 percent to 5.5 percent by maintaining a “status quo” in its interest rates decision while giving a signal to three cuts in CY24.

The highest increase was recorded in Pakistan Engineering Company Limited shares, which rose by Rs38.16 to Rs450.75 per share, followed by JDW Sugar Mills Limited, which increased by Rs31.45 to Rs450.75 per share.

A significant decline was noted in Rafhan Maize Products Company Limited, which fell by Rs350.01 to Rs8,225 per share, followed by Khyber Textile Mills Limited, which closed lower by Rs49.66 to Rs612.53 per share.

E&P, tech and cement sectors contributed negatively to the index as PPL, SYS, OGDC, LUCK and PIOC lost 185 points, cumulatively. On the flip side, NBP, FFC & MCB saw some buying interest as they cumulatively added 102 points.

PTCL remained the volume leader with 52.898 million shares which closed lower by 55 paisas to Rs15.84 per share. Pak Int. Bulk followed it with 41.979 million shares, which closed higher by 10 paisas to Rs6.05 per share.

Other significant turnover stocks included Bank of Punjab XD, WorldCall Telecom, Gul Ahmed, Cnergyico PK, Hascol Petrol, K-Electric Ltd., Pak Refinery and Kohinoor Spining. In Future Market, 313 companies recorded trading, of which 63 increased, 249 decreased and one remained unchanged.