Friday July 12, 2024

Stocks start week with drop of 578 points

By Our Correspondent
June 25, 2024
A stock broker looks at a computer during a trading session at the Pakistan Stock Exchange (PSX) in Karachi on July 31, 2023. — AFP
A stock broker looks at a computer during a trading session at the Pakistan Stock Exchange (PSX) in Karachi on July 31, 2023. — AFP

KARACHI: Stocks started the first day of the week, Monday, with a decline as pressure mounted amid dismal data on current account while investors opted for profit-taking.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 share index decreased by 578.40 points or 0.73 per cent to 78,232.10 points against 78,810.49 points recorded in the last session. The highest index of the day remained at 79,388.12 points while the lowest level was recorded at 78,167.43 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks fell sharply lower on dismal data on $270 million current account deficit for May’24 and tough tax measures for exporters in the FY25 budget.”

He said concerns for unresolved Rs5.3 trillion circular debt crises and uncertainty over $15 billion China IPPs’ dues rollover played a catalyst role in the bearish close.The KSE-30 index decreased by 169.53 points or 0.67 per cent to 25,304.02 points against 25,473.55 points.

Traded shares decreased by 86 million shares to 385.176 million shares from 471.344 million shares. The trading value decreased to Rs15.450 billion from Rs20.475 billion. Market capital narrowed to Rs10.321 trillion against Rs10.409 trillion. Of 432 companies active in the session, 122 closed in green, 254 in red and 56 remained unchanged.

Maaz Mulla, an analyst at Topline Securities, said the KSE-100 index initially opened on a positive note where the index made an intraday high of 577 points and soon after touching the high index came down to make an intraday low of 643 points to close at 78,232 level (down by 578 points)

Moreover, on the news front, the International Monetary Fund (IMF) commended Pakistan for its stringent economic measures in the 2024-25 budget, he said.The banking sector witnessed profit-taking where UBL, MEBL, BAHL, BAFL and FABL cumulatively contributed 345 points to the declining index.

HUBC from the power sector continued its positive momentum as Mega Motors Company, a subsidiary of Hub Power Company, has entered into a new line of business in electric vehicles with BYD Auto Industry Company Limited.

The highest increase was recorded in Nestle Pakistan Limited shares, which rose by Rs112.27 to Rs7,196 per share, followed by Bhanero Textile Mills Limited, which increased by Rs55.41 to Rs1,050 per share. A significant decline was noted in Mehmood Textile Mills Limited, which fell by Rs52.41 to Rs530.08 per share, Bata Pakistan Limited followed it, which closed lower by Rs24.64 to Rs1,674.36 per share.

Brokerage Arif Habib Ltd stated the PSX experienced a downturn on Monday after last week’s test of the 80,000 mark. The KSE-100 index faced considerable selling pressure.The KSE-100 index’s first line of support is anticipated around the 76,000-77,000 range, with the KSE-30’s support at 25,000. Analysts suggest that as long as these support levels hold, there is potential for immediate upside.

For the week, the key levels to watch remain 75,000 for the KSE-100 and 24,000 for the KSE-30. Pervez Ahmed Co remained the volume leader with 46.842 million shares which closed higher by 25 paisas to Rs2.11 per share. WorldCall Telecom followed it with 20.763 million shares, which closed flat at Rs1.27 per share.

Other significant turnover stocks included Hub Power Co, JS Bank Ltd, K-Electric Ltd., Air Link Commun, Kohinoor Spining, Unity Foods Ltd, Dewan Motors and Hum Network. In the futures market, 316 companies recorded trading, of which 79 increased, 236 decreased and one remained unchanged.