Stocks lose 283 points amid profit-taking

KARACHI: Stocks closed lower by 283 points on Wednesday, as investors opted for profit-taking in large-cap stocks post-earnings season.The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 share index decreased by 282.88 points or 0.31 per cent to 92,021.44 points against 92,304.32 points recorded in the previous session. The highest index of the day remained at 92,966.95 points while the lowest level was recorded at 91,891.47 points.Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed sharply lower amid consolidation post-earnings season.”

He said that rupee instability, weak global crude prices and uncertainty over the outcome of the IMF’s first review on EFF amid tax collection shortfall and pending China energy debt played a catalyst role in the bearish close.The KSE-30 index decreased by 175.5 points or 0.61 per cent to 28,664.80 points against 28,840.30 points.

Traded shares increased by 137 million shares to 889.166 million shares from 752.664 million shares. The trading value dropped to Rs30.474 billion from Rs32.827 billion. Market capital narrowed to Rs11.816 trillion against Rs11.858 trillion. Of the 452 companies active in the session, 201 closed in green, 200 in red and 51 remained unchanged.

Naveed Nadeem, analyst at Topline Securities, said the market showed notable volatility, with the index reaching a peak of 92,967 and dipping to a low of 91,891 as investors capitalised on profit-taking in large-cap stocks.

The index was weighed down by negative contributions from SYS, UBL, BAHL, PPL and OGDC, which collectively subtracted 339 points. On the other hand, LUCK, SAZEW, and KOHC helped offset some of these losses, adding 94 points to the index.

The highest increase was recorded in Unilever Pakistan Foods Limited, which rose by Rs233.34 to Rs18,900.67 per share, followed by Hoechst Pakistan Limited, which increased by Rs93 to Rs2,353 per share. A significant decline was noted in Pakistan Tobacco Company Limited, which fell by Rs35.49 to Rs1,239.22 per share; Rafhan Maize Products Company Limited followed it, which closed lower by Rs35.43 to Rs7,406.66 per share. Brokerage Arif Habib Ltd stated that the Pakistan Stock Exchange (PSX) saw limited gains as the KSE-100 index closed down for the day, unable to hold above the 92,000 level.

Maple Leaf Cement Factory (MLCF PA) announced a competitive bid to acquire a 37.86 per cent stake in Attock Cement Pakistan Limited (AGL), offering Rs39 per share for 160.8 million shares.

With support now rising to the 90,000-mark, further consolidation is anticipated before an upward trend resumes. The outlook remains positive as higher levels are expected in the near term for the KSE-100.

BO Punjab remained the volume leader with 88.684 million shares which closed higher by 57 paisas to Rs6.21 per share. Cnergyico PK followed it with 71.639 million shares, which closed higher by 25 paisas to Rs4.11 per share.

Other significant turnover stocks included Power Cement, Sui South Gas, Fauji Foods Ltd, Hascol Petrol, WorldCall Telecom, Treet Corp, Treet Battery Ltd., and Agritech Limited. In the futures market, 317 companies recorded trading, of which 132 increased, 180 decreased and 5 remained unchanged.