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Monday July 22, 2024

Stocks lose 830 points, fall below 80k points amid profit-taking

By Our Correspondent
July 11, 2024
An undated image of the Pakistan Stock Exchange (PSX). — AFP/file
An undated image of the Pakistan Stock Exchange (PSX). — AFP/file

KARACHI: Stocks decreased on Wednesday, and the benchmark KSE-100 index fell below the 80k mark amid profit-taking by investors.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 share index decreased by 830.51 points or 1.03 per cent to 79,841.56 points against 80,672.06 points recorded in the last session. The highest index of the day remained at 80,971.96 points while the lowest level was recorded at 79,841.32 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed sharply lower on concerns for economic uncertainty.”He said uncertainty over the resolution of China energy debt and the IMF’s condition to abolish the Pakistan Sovereign Wealth Fund by Sep 30 for transparency and accountability of profit-making SOEs after tough tax measures in the federal budget FY25 played a catalyst role in the bearish close.

The KSE-30 index decreased by 285.46 points or 1.11 per cent to 25,468.51 points against 25,753.97 points.Traded shares decreased by 115 million shares to 495.910 million shares from 610.264 million shares. The trading value dropped to Rs22.116 billion from Rs24.317 billion. Market capital narrowed to Rs10.665 trillion against Rs10.741 trillion. Of 440 companies active in the session, 153 closed in green, 241 in red and 46 remained unchanged.

Maaz Mulla, an analyst at Topline Securities, said profit-taking was witnessed at PSX, as investors chose to capitalize on the market’s strength. The index reached an intraday high of 299 points but later dipped to an intraday low of 830 points before settling at 79,841, reflecting a decline of 1.03 per cent.

The negative momentum was led by prominent stocks such as HUBC, PPL, DAWH, MTL, HBL, and BAHL, collectively contributing 362 points to the index’s downturn.The highest increase was recorded in Exide Pakistan Limited shares, which rose by Rs71.17 to Rs820.38 per share, followed by PIA Holding Company Limited B, which increased by Rs63.20 to Rs728.47 per share. A significant decline was noted in Unilever Pakistan Foods Limited, which fell by Rs178.83 to Rs18,111.16 per share, Pakistan Tobacco Company Limited followed it, which closed lower by Rs46.03 to Rs1,065.84 per share.

Brokerage Arif Habib Ltd stated the KSE-100 index is currently testing support around the 80,000-point mark, a crucial zone where buyers are anticipated to show up.In economic developments, the government announced a subsidy of Rs4-7 per kWh for residential power consumers for three months, up to September. This relief is aimed at 20.5 million consumers who use up to 200 units per month.

The government of Pakistan has informed the International Monetary Fund (IMF) that this subsidy will be financed through the development budget.Market analysts are closely monitoring the 80,000-point level, looking for it to be regained to allow for additional upside expansion. The resilience of this support zone is seen as critical for the market’s near-term trajectory.

As the KSE-100 index hovers around this significant support level, the market’s ability to attract buyers and stabilize will be key to future gains.K-Electric Ltd. remained the volume leader with 57.716 million shares which closed lower by 2 paisas to Rs4.89 per share. PIA Holding Company followed it with 43.039 million shares, which closed higher by Rs1.22 to Rs25.08 per share.

Other significant turnover stocks included Unity Foods Ltd, WorldCall Telecom, Hum Network, Agritech Limited, BO Punjab, PTCL, Ghani Chemical and Cnergyico PK.In the futures market, 304 companies recorded trading, of which 57 increased, 242 decreased and 5 remained unchanged.