Stocks end week with drop of 60 points amid political uncertainty

KARACHI: Staying in the positive zone most of the day, stocks saw some selling later on Friday and closed slightly lower amid political uncertainty.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 share index decreased by 60.67 points or 0.08 per cent to 78,045.31 points against 78,105.98 points recorded in the last session. The highest index of the day remained at 78,619.18 points while the lowest level was recorded at 78,041.08 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed lower amid political uncertainty.”He said uncertainty over the IMF’s approval for the proposed closure of IPPs, tax collection shortfalls and cut in the PSDP; the surge in government debt to over Rs85 trillion in FY24; and reports of a drop in textile exports by 3.1 per cent in July 24 played a catalyst role in the bearish close.

The KSE-30 index decreased by 72.01 points or 0.29 per cent to 24,973.21 points against 25,045.21 points.Traded shares increased by 9 million shares to 600.719 million shares from 591.065 million shares. The trading value rose to Rs21.07 billion from Rs20.1 billion. Market capital narrowed to Rs10.398 trillion against Rs10.448 trillion. Of 440 companies active in the session, 170 closed in green, 220 in red and 50 remained unchanged.

Nabeel Haroon, an analyst at Topline Securities, said the KSE 100 Index largely traded in positive during the day, however, some pressure was observed at the later hours of trade as investors came in to book their gains.

Major positive contributions to the index came from UPFL, HPL, PECO, ISIL and Nestle, as they cumulatively contributed 534 points to the index. On the other hand, SAPT, EXIDE, KHYT, SAZEW and RCML lost value weighing down the index by 330 points.

The highest increase was recorded in Unilever Pakistan Foods Limited shares, which rose by Rs358.81 to Rs17,959.81 per share, followed by Hoechst Pakistan Limited, which increased by Rs60.29 to Rs1,660.29 per share. A significant decline was noted in Exide Pakistan Limited, which fell by Rs83.58 to Rs929.72 per share; Sazgar Engineering Works Limited followed it, which closed lower by Rs56.82 to Rs929.72 per share.

Brokerage Arif Habib Ltd stated that the KSE-100 index demonstrated consistent stickiness around the 78k level throughout the week, remaining range-bound between 78k and 79k. On Friday, the index declined by 0.62 per cent week-on-week.

The cement sector played a significant role as key index movers, with nearly all names closing sharply higher. With the index hugging support, the cement sector is expected to play a crucial role in driving the index higher in the coming week.

Cement stocks have experienced substantial drawdowns from their respective highs earlier in the year, ranging from -10 percent to -20 percent. As the market looks to build on its support, the focus will be on whether cement names can dominate the performance tables.

Kohinoor Spinning remained the volume leader with 109.495 million shares which closed higher by 96 paisas to Rs10.28 per share. Yousuf Weaving followed it with 70.094 million shares, which closed higher by 48 paisas to Rs6.87 per share.

Other significant turnover stocks included PTCL, WorldCall Telecom, Air Link Commun, Roshan Packages, PIA Holding Company, Loads Limited, K-Electric Ltd. And Fauji Cement.In the futures market, 323 companies recorded trading, of which 102 increased, 218 decreased and 3 remained unchanged.