Stocks end week with loss of 70 points

KARACHI: Stocks witnessed a slight correction and closed lower on Friday, as investors consolidated their positions at the record high level.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 share Index decreased by 70.01 points or 0.09 per cent to 80,212.79 points against 80,282.80 points recorded in the last session. The highest index of the day remained at 80,627.49 points while the lowest level was recorded at 80,080.25 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed lower amid pressure due to concerns regarding FTSE Russell Pakistan downgrade to frontier market status.”He said that a weak rupee, projections for higher CPI inflation amid tough tax measures in the FY25 budget, and concerns over dismal data on oil sales falling by 8.0 per cent in FY24 and cement dispatches falling by 12.6 per cent in June 24 played a catalyst role in the bearish close.

The KSE-30 index decreased by 79.98 points or 0.31 per cent to 25,711.84 points against 25,791.82 points.Traded shares decreased by 48 million shares to 448.981 million shares from 496.782 million shares. The trading value dropped to Rs18.995 billion from Rs19.328 billion. Market capital narrowed to Rs10.594 trillion against Rs10.612 trillion. Of 432 companies active in the session, 152 closed in green, 229 in red and 51 remained unchanged.

Nabeel Haroon, an analyst at Topline Securities, said that a volatile session was observed at the exchange as the index traded between its intraday high of 345 points and intraday low of 70 points to finally settle at 80,213 level (down by 0.09 per cent). “This volatility can be attributed to consolidation around the psychological index level of 80,000 after a recent rally in the market,” he said.

Investor interest was observed in mid-cap banks as major positive contributions to the index came from HBL, BAHL, NBP, HMB and AKBL, where they cumulatively contributed 333 points to the index. On the flip side, OGDC, HUBC, MCB, MEBL and BAFL lost value, weighing down the index by 172 points. Traded volume and value for the day stood at 447mn shares and Rs18.97bn respectively. BOP was today’s volume leader with 34mn shares.

The highest increase was recorded in Rafhan Maize Products Company Limited shares, which rose by Rs108.11 to Rs7,649.75 per share, followed by Sazgar Engineering Works Limited, which increased by Rs65.16 to Rs914.91 per share. A significant decline was noted in Hoechst Pakistan Limited, which fell by Rs140 to Rs1,460 per share, Unilever Pakistan Foods Limited followed, closing lower by Rs86.13 to Rs18,172.51 per share.

Brokerage Arif Habib Ltd stated the KSE-100 index experienced a robust expansion this week, gaining 2.34 per cent to close above the 80,000-point mark, demonstrating strong market momentum.

Despite some declines towards the end of the week, the index maintained its position above the 80,000-point level, indicating positive price action. Analysts expect this trend to continue into the coming week, with further upside potential anticipated.

Weekly support has now risen to 79,400 points, with key sectors such as banks, pharmaceuticals, fertilizers, and power expected to lead the market.

The market’s resilience above the 80,000-point level is a promising sign, reflecting investor confidence and a positive economic outlook. The strong performance of the financial and industrial sectors, coupled with supportive fiscal and monetary policies, is likely to sustain this upward momentum.

BO Punjab remained the volume leader with 34.409 million shares which closed higher by 17 paisas to Rs5.70 per share. National Bank XD followed it with 28.497 million shares, which closed higher by Rs3.86 to Rs46.91 per share.

Other significant turnover stocks included PIA Holding Company, WorldCall Telecom, Hum Network, Askari Bank, K-Electric Ltd, Octopus Digital, Pak Refinery and Hascol Petrol.In the futures market, 304 companies recorded trading, of which 83 increased, 216 decreased and 5 remained unchanged.