Stocks retreat as IMF new loan terms weigh

Stocks ended on a negative note on Friday amid investors' concerns about stringent economic measures tied to the International Monetary Fund's conditions for a new loan programme, traders said.

The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index shed 265.57 points or 0.41 percent to close at 65,151.83 points. The highest index of the day remained at 65,534.02 points while the lowest level was recorded at 65,056.66 points. The KSE-30 index also fell by 86.52 points or 0.40 percent to 21,448.04 points.

Analyst Ahsan Mehanti from Arif Habib Corp said concerns over decisions by the SIFC for structural reforms and the impact of an IMF-mandated 18 percent GST on petroleum products' sales were key factors driving the downturn.

"Additional pressures stemmed from US concerns over election irregularities, a potential increase in industrial power tariffs, and a rise in government treasury bond yields, contributing to the bearish sentiment."

Traded shares decreased by 181 million shares to 208.408 million shares from 389.654 million shares. The trading value dropped to Rs7.149 billion from Rs11.307 billion. Market capitalization narrowed to Rs9.170 trillion from Rs9.226 trillion. Of the 332 companies active in the session, 120 closed in green, 185 in red, and 27 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.

Brokerage Topline Securities in a post-market note said that a range-bound session was observed at the exchange as the index traded between its intraday high of 167 points and intraday low of 361 points to finally close at the 65,152 points level.

Major positive contributions to the index came from NBP, PSEL, MEBL, TRG, and SYS, as they cumulatively contributed 83 points to the index. On the flip side, OGDC, UBL, HBL, HUBC, and PTC lost value to weigh down on the index by 179 points.

The highest increase was recorded in Rafhan Maize Products Company Limited shares, which rose by Rs175 to Rs8,400 per share, followed by Hoechst Pakistan Limited, which increased by Rs93.87 to Rs1,353.87 per share. A significant decline was noted in Nestle Pakistan Limited, which fell by Rs310 to Rs7,200 per share, followed by Sapphire Textile Mills Limited, which closed lower by Rs75 to Rs1,525 per share.

Brokerage Arif Habib Ltd said that the benchmark index experienced a modest weekly gain of 0.5 percent week-on-week, "but faced rejection upon reaching the critical 66k level."

In other news, Secure Logistics Group aims to raise Rs1.19 billion, with Rs600 million through book building and Rs585 million from pre-IPO investors. Arif Habib has been appointed as the manager to the offer, with a floor price set at 12 rupees per share. Noteworthy pre-IPO investors include Saudi Bugshan and Karandaaz Pakistan.

"Looking ahead, the market may experience downside pressure within the 64-66k range in the coming week. However, there remains anticipation for an eventual breakthrough to new all-time highs," the brokerage added.

Pak Reinsurance remained the volume leader with 24.162 million shares, which closed higher by Re1.0 to Rs13.08 per share. PIAC (A) followed it with 16.544 million shares, which closed lower by Rs2.07 to Rs25.04 per share.

Other significant turnover stocks included PTCL, WorldCall Telecom, Agritech Limited, Hascol Petrol, Bank of Punjab XD, Cnergyico PK, K-Electric Ltd., and Pak Int. Bulk. In the Future Market, 313 companies recorded trading, of which 99 increased, 208 decreased, and 6 remained unchanged.