Stocks close lower amid pre-budget uncertainty

KARACHI: Stocks closed lower on Monday as profit-taking was witnessed amid pre-budget uncertainty, losing the majority of gains of the previous session.

The Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index decreased by 465.55 points or 0.61 per cent to 75,517.49 points against 75,983.04 points recorded in the last session.

The highest index of the day remained at 76,187.45 points while the lowest level was recorded at 75,485.62 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed bearish on pre-budget uncertainty.”He said that overleveraging, uncertainty over the outcome of negotiations over IPP dues to China, and reports of the Rs12.5 trillion proposed tax collection target for FY25 impacting industrials’ earnings played a catalyst role in the bearish close.

The KSE-30 index decreased by 167.08 points or 0.68 per cent to 24,277.73 points against 24,444.81 points.Traded shares decreased by 163 million shares to 446.071 million shares from 609.848 million shares. The trading value dropped to Rs16.406 billion from Rs23.580 billion. Market capital narrowed to Rs10.186 trillion against Rs10.248 trillion. Of 406 companies active in the session, 123 closed in green, 231 in red and 52 remained unchanged.

Ali Najib, an analyst at Topline Securities, said that equities kicked off the week with the KSE100 index observing some profit-taking around 76k psychological level and called the day at 75,517 levels (-466 points; down 0.61 per cent).

Investors opted to trim their stock positions near the 76k level and compelled the market to settle below 76k levels post an intraday high at 76,188, a gain of 204 points during the day. “A relatively lacklustre momentum has been witnessed during business hours in the backdrop of budgetary concerns and mixed IMF vibes,” he said.

The fertilizer, banks and E&P sectors contributed negatively where FFC, MCB, PPL, OGDC and BAFL lost 251 points. On the contrary, FABL, HBL and SYS added 93 points due to some buying interest observed in them.

The highest increase was recorded in Exide Pakistan Limited shares, which rose by Rs37.66 to Rs508.35 per share, followed by Pakistan Services Limited, which increased by Rs24.59 to Rs806.97 per share. A significant decline was noted in Shahmurad Sugar Mills Limited, which fell by Rs45.43 to Rs522.41 per share, Murree Brewery Company Limited followed it, which closed lower by Rs13.21 to Rs430.39 per share.

Brokerage Arif Habib Ltd stated that the PSX experienced a volatile start to the week on Monday, erasing a significant portion of Friday’s gains.

Despite the overall positive outlook on the market, analysts are aware of the downside risks if key support levels are breached. This week’s trading sessions are expected to be decisive in determining the market’s direction.

K-Electric Ltd remained the volume leader with 55.596 million shares which closed lower by 19 paisas to Rs5.02 per share. Symmetry Group Ltd followed it with 40.663 million shares, which closed higher by 69 paisas to Rs6.19 per share.

Other significant turnover stocks included WorldCall Telecom, Dewan Cement, Hum Network, Dewan Motors, Hascol Petrol, Faysal Bank, Cnerygyico PK and Fauji Cement.In the futures market, 317 companies recorded trading, of which 65 increased, 251 decreased and one remained unchanged.