KSE-100 drops 1,510 points amid investor concerns on political noise

KARACHI: The Pakistan Stock Exchange (PSX) continued its downturn momentum on Thursday as well, where investors remained concerned about political noise and new tax amendments, which barred non-filers from investing in the share market.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index decreased by 1,510.19 points or 1.32 per cent to 112,638.26 points against 114,148.46 points recorded in the last session. The highest index of the day remained at 114,329.95 points, while the lowest level was recorded at 112,594.67 points.

Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Pressure was witnessed at the PSX amid concerns over the outcome of government-PTI talks and the restrictions imposed on non-filing PSX investors under new tax amendments.”

He said that political uncertainty, apprehensions regarding the SBP’s cautious monetary easing, and fears of slippages on IMF tax collection targets acted as key catalysts for the bearish activity.

The KSE-30 index decreased by 494.03 points or 1.37 per cent to 35,458.09 points against 35,952.12 points. Traded shares decreased by 404 million shares to 695.142 million shares from 1,099.982 million shares. The trading value dropped to Rs24.293 billion from Rs32.466 billion. Market capital narrowed to Rs14.156 trillion against Rs14.316 trillion. Of the 454 companies active in the session, 89 closed in green, 321 in red and 44 remained unchanged.

Analyst Naveed Nadeem at Topline Securities said the market experienced notable volatility, reaching a peak of 114,330 and a low of 112,595. This reflects uncertainty in the cement and gas sectors, which affected sentiment.

The drop in the index was mainly driven by ENGROH, MARI, MEBL, LUCK, and EFERT, which collectively contributed to a loss of 615 points. The highest increase was recorded in Rafhan Maize Products Company Limited, which rose by Rs125.47 to Rs9,080.41 per share, followed by JDW Sugar Mills Limited, which increased by Rs90.50 to Rs995.45 per share. A significant decline was noted in Unilever Pakistan Foods Limited, which fell by Rs188.99 to Rs20,811.01 per share; Nestle Pakistan Limited followed it, which closed lower by Rs131.02 to Rs7,151.21 per share.

Analyst Muhammad Hasan Ather at JS Global said the decline was mainly driven by noise on the political front, profit-taking by major institutional investors like insurance companies and banks and structural challenges, including the new tax amendments barring non-filers from market participation.

“Despite this,” he said, “a positive outlook remains as the market would likely stabilise with improved political clarity, and further monetary easing by the State Bank of Pakistan, encouraging investor confidence and participation.”

WorldCall Telecom remained the volume leader with 195.296 million shares, which closed flat at Rs1.79 per share. K-Electric Ltd, with 48.682 million shares, followed it, which closed lower by 10 paisas to Rs4.76 per share.

Other significant turnover stocks included Cnergyico PK, Fauji Foods Ltd, Pak Elektron, Lotte Chemical, BO Punjab, Telecard Limited, Pak Refinery and Pace (Pak) Ltd. In the futures market, 298 companies recorded trading, 51 of which increased and 245 decreased and 2 remained unchanged.