KSE-100 drops 543 points as rollover pressure weighs on market

KARACHI: Stocks continued the bearish trend for the third consecutive session on Wednesday. The benchmark KSE-100 index decreased by 543 points amid selling pressure in future contracts’ rollover.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index decreased by 543 points, or 0.48 per cent, to 111,487.36 points, down from the 112,030.36 points recorded in the last session. The highest index of the day remained at 112,569.9 points, while the lowest level was recorded at 111,157.19 points.

Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks closed lower amid selling pressure in future contracts rollover and worries over the cautious SBP policy rate cut.” He said that rupee instability, political noise and uncertainty over the outcome of slippages on IMF tax collection targets played a catalyst role in the bearish activity.

The KSE-30 index decreased by 201.46 points or 0.57 per cent to 34,934.4 points against 35,135.86 points. Traded shares decreased by 68 million shares to 449.244 million shares from 517.804 million shares. The trading value dropped to Rs28.186 billion from Rs29.209 billion. Market capital narrowed to Rs13.738 trillion against Rs13.770 trillion. Of the 448 companies active in the session, 138 closed in green, 247 in red, and 63 remained unchanged.

Analyst Nabeel Haroon at Topline Securities said the KSE-100 index largely traded in a negative zone. “This pressure in the market can be attributed to lack of triggers, selling by intuitions and ongoing futures’ rollover week,” he said.

The top negative contributions to the index came from FFC, EFERT, PSO, MCB, HUBC and BAFL, as they cumulatively contributed -508 points to index. Traded value-wise FFC (Rs3.64 billion), Mari (Rs2.42 billion), SEARL (Rs823 million), PSO (Rs775 million), OGDC (Rs774 million), ENGROH (Rs614 million) and PPL (Rs596 million) dominated the trading activity.

The highest increase was recorded in Rafhan Maize Products Company Limited, which rose by Rs100.01 to Rs9,400 per share, followed by Unilever Pakistan Foods Limited, which increased by Rs98.51 to Rs22,100.51 per share. A significant decline was noted in Hoechst Pakistan Limited, which fell by Rs48.08 to Rs2,951.92 per share; Ismail Industries Limited followed it, which closed lower by Rs47.96 to Rs1,850 per share.

Brokerage Arif Habib Ltd stated that the KSE-100 continued its downward trend, slipping outside the 112k-115.5k range and raising concerns over further downside risks. Regaining this range is crucial to mitigate bearish pressure and could signal a “seek and destroy” market profile aimed at frustrating both buyers and sellers.

The key support level of 112k remains pivotal for the market’s outlook for the remainder of the week. Cnergyico PK remained the volume leader with 31.197 million shares, which closed higher by 17 paisas to Rs7.53 per share. K-Electric Ltd., with 29.670 million shares, followed it, which closed lower by 9 paisas to Rs4.58 per share.

Other significant turnover stocks included Citi Pharma Ltd, Dewan Motors, WorldCall Telecom, Sui South Gas, Fauji Cement, Fauji Foods Ltd, Waves Home App and Waves Corp Ltd. In the futures market, 301 companies recorded trading, 70 of which increased, 222 decreased and 9 remained unchanged.