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Sunday November 10, 2024

Stocks close lower by 222 points amid political noise

By Our Correspondent
October 15, 2024
A Pakistani stock-broker monitors shares prices at teh Pakistan Stock Exchange on January 16, 2023. —INP
A Pakistani stock-broker monitors shares prices at teh Pakistan Stock Exchange on January 16, 2023. —INP

KARACHI: Stocks closed lower by 222 points on the first day of the week (Monday) amid political noise and foreign outflows.

The Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share index decreased by 222.02 points or 0.26 per cent to 85,261.39 points against 85,483.4 points recorded in the last session. The highest index of the day remained at 86,105.03 points while the lowest level was recorded at 85,156.11 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed under pressure on political noise and foreign outflows.”He said government action on IPPs payments, concerns over the outcome of the IMF’s pressure on reforming the agriculture and textile sectors’ tax breaks, and delays over the privatisation of SOEs played a catalyst role in the bearish close.

The KSE-30 index decreased by 148 points or 0.54 per cent to 27,011.68 points against 27,159.68 points.Traded shares decreased by 83 million shares to 477.642 million shares from 560.74 million shares. The trading value dropped to Rs23.474 billion from Rs26.121 billion. Market capital, however, expanded to Rs11.164 trillion against Rs11.156 trillion. Of the 443 companies active in the session, 205 closed in green, 180 in red and 58 remained unchanged.

Maaz Mulla, analyst at Topline Securities, said the KSE-100 index opened on a positive note, reaching a high of 621 points. However, this momentum was short-lived as investors opted to book profits, resulting in an intraday low of 327 points. The index, ultimately, closed at 85,261, down 222 points, or 0.26 per cent.

He said that this profit-taking was influenced by an expected downward revision of earnings for HUBC, which declined by 9.15 per cent following the early termination of a contract, as well as EFERT’s corporate results, which fell by 4.1 per cent as the company declared the 3Q2024 EPS of Rs13.47 and the dividend of Rs2.5 per share, which was lower than industry expectations.

Key contributors to the index included HUBC, EFERT, OGDC, BAHL and Engro, which collectively subtracted 532 points. Conversely, positive movements from FFC, NBP, ATRL, and ISL added 326 points to the index.

The highest increase was recorded in Atlas Honda Limited shares, which rose by Rs62.42 to Rs814.35 per share, followed by Reliance Cotton Spinning Mills Limited, which increased by Rs57.57 to Rs650 per share. A significant decline was noted in Unilever Pakistan Foods Limited, which fell by Rs261.5 to Rs17,350.5 per share; Nestle Pakistan Limited followed it, which closed lower by Rs139.45 to Rs6,792 per share.

Brokerage Arif Habib Ltd said that the PSX started the week with consolidation below the 86,000 mark, as the KSE-100 index balanced gains and losses.HUBC (-8.04 per cent) remained the largest drag on the index, breaking below the significant Rs100 level, adding pressure to the market.

Positive momentum in the refinery sector continues, suggesting sector rotation into refineries as a key theme. Market declines into support around the 84,000 level, which is expected to be viewed as a buying opportunity, said the brokerage.

WorldCall Telecom remained the volume leader with 41.061 million shares which closed higher by 3 paisas to Rs1.21 per share. Hub Power Co followed it with 37.178 million shares, which closed lower by Rs8.59 paisas to Rs98.31 per share.

Other significant turnover stocks included Pak Refinery XD, Cnergyico PK, Pak Int Bulk, PTCL, Fauji Cement XD, Hum Network, K-Electric Ltd, and Nishat ChunPow.In the futures market, 325 companies recorded trading, of which 187 increased, 135 decreased and 3 remained unchanged.