KSE-100 starts week with loss of 1,360 points

KARACHI: Stocks kicked off the week on a negative note, where the benchmark KSE-100 index plunged by 1,360 points amid concerns over the proposed Tax Laws Amendment Bill restricting non-filers from trading in the market.

The market participants were also cautious ahead of the Monetary Policy Committee (MPC) meeting, which announced a 100-basis point cut in the evening, which was widely anticipated.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index plunged by 1,360.16 points, or 1.18 per cent, to 113,520.32 points, down from the 114,880.49 points recorded in the last session. The highest index of the day remained at 115,596.87 points, while the lowest level was recorded at 113,482.23 points.

Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks closed bearish amid a rout in global equities and weak global crude oil prices.”He said that uncertainty over the outcome of government-PTI talks, the SBP policy decision later in the evening and worries over proposed Tax Laws Amendment Bill 2024 limiting non-filers from making stock purchases played a catalyst role in bearish activity.

The KSE-30 index decreased by 473.73 points or 1.31 per cent to 35,651.25 points against 36,124.98 points.Traded shares decreased by 138 million shares to 494.003 million shares from 632.039 million shares. The trading value dropped to Rs25.940 billion from Rs37.8 billion. Market capital narrowed to Rs13.928 trillion against Rs14.116 trillion. Of the 442 companies active in the session, 97 closed in green, 298 in red, and 47 remained unchanged.

Maaz Mulla at Topline Securities said the market opened on a positive note, with the index making an impressive intraday high of 716 points. However, the momentum was short-lived as bears swiftly took charge. The index plunged to an intraday low of 1,398 points before closing at 113,520, marking a decline of 1,360 points or 1.18 per cent.

This negative trend can largely be attributed to the weaker-than-expected financial results of Mari, which dampened investor sentiment. The company reported earnings per share (EPS) of Rs9.3, with no cash payout, falling below market expectations and contributing significantly to the bearish activity observed during the trading session.

Key contributors to the upward trajectory included SYS, EFERT, FFC, POL, and BAHL, collectively adding 282 points. On the other hand, substantial declines in Mari, ENGROH, PSO, HUBC and PPL weighed heavily on the market, accounting for a combined loss of 783 points.

The highest increase was recorded in Unilever Pakistan Foods Limited, which rose by Rs395.46 to Rs21,995.45 per share, followed by Achroma Pakistan Limited, which increased by Rs43.51 to Rs478.56 per share. A significant decline was noted in Mari Energies Limited, which fell by Rs48.13 to Rs536.46 per share; Colgate-Palmolive (Pakistan) Limited followed it, which closed lower by Rs40.1 to Rs1,497.88 per share.

Sui South Gas remained the volume leader with 51.651 million shares, which closed lower by Rs4.39 to Rs39.53 per share. Cnergyico PK, with 50.683 million shares, followed it, which closed lower by 14 paisas to Rs7.57 per share.

Other significant turnover stocks included WorldCall Telecom, Pak Elektron, PTCL, Hascol Petrol, K-Electric Ltd., Fauji Cement, Symmetry Group Ltd and Bank Makramah.In the futures market, 297 companies recorded trading, 47 of which increased, 249 decreased and one remained unchanged.