Stocks fall 589 points amid weak economic outlook

KARACHI: Stocks closed lower on the first day of the week on Monday amid weak economic outlook whereas auto stocks remained under pressure due to a month-on-month decline in car sales.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 share index decreased by 589.30 points or 0.75 per cent to 77,980.29 points against 78,569.59 points recorded in the last session. The highest index of the day remained at 78,886.46 points while the lowest level was recorded at 77,940.53 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks fell sharply lower on weak economic outlook.”He said rupee instability, political uncertainty, delays over privatization of SOEs, and concerns for unsettled China IPP debt played a catalyst role in the bearish close.

The KSE-30 index decreased by 176.02 points or 0.7 per cent to 25,002.37 points against 25,178.40 points.Traded shares decreased by five million shares to 415.17 million shares from 420.405 million shares. The trading value increased to Rs22.24 billion from Rs20.72 billion. Market capital narrowed to Rs10.39 trillion against Rs10.49 trillion. Of 444 companies active in the session, 122 closed in green, 278 in red and 44 remained unchanged.

Maaz Mulla, an analyst at Topline Securities, said the KSE-100 index began the day on a positive note, with an intraday high of 316 points. However, selling pressure emerged in the second half, pushing the index to an intraday low of 629 points before closing at 77,980, down by 0.75 per cent.

MARI (+3.88 per cent) was the standout performer of the day, continuing its upward momentum after two consecutive upper caps in the previous sessions, following the company’s announcement of an 800 per cent bonus. In terms of value traded, MARI led the market with nearly Rs4.3 billion.

Throughout the session, MARI, HUBC, SRVI, POL, and MCB collectively contributed 259 points to the index. Conversely, profit-taking in MEBL, SYS, and LUCK resulted in a loss of 176 points.

The highest increase was recorded in Mari Petroleum Company Limited shares, which rose by Rs122.16 to Rs3,266.80 per share, followed by Service Industries Limited, which increased by Rs48.95 to Rs967.30 per share. A significant decline was noted in Rafhan Maize Product Company Limited, which fell by Rs125.59 to Rs7,403.98 per share, Nestle Pakistan Limited followed it, which closed lower by Rs98 to Rs6,802 per share.

Brokerage Arif Habib Ltd stated that the KSE-100 index retest the 78,000 level, where a resumption of upside momentum is anticipated. Pakistan’s car sales fell sharply to 5,857 units in July, down from 10,128 units in June. This decline pressured auto stocks, leading to notable losses in SAZEW (-6.04 percent), HCAR (-2.7 percent), and GHNI (-8.04 percent).

The 78,000 level is expected to hold, with buyers likely to emerge, making Tuesday and Wednesday potential strong days for the KSE-100. However, declines below 77,000 could undermine expectations for gains from the current levels.

Yousuf Weaving remained the volume leader with 38.07 million shares which closed higher by Re1 to Rs5.34 per share. WorldCall Telecom followed it with 19.22 million shares, which closed flat at Rs1.17 per share.

Other significant turnover stocks included Kohinoor Spinning, Hascol Petrol, Telecard Limited, Roshan Packages, Synthetic Prod, Amtex Limited, Avanceon Ltd and The Organic Meat.

In the futures market, 332 companies recorded trading, of which 64 increased, 261 decreased and 7 remained unchanged.